27 Dec. 2001 - 2 Jan. 2002
Issue No.566
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Al-Ahram Weekly Online 27 Dec. 2001 - 2 Jan. 2002 Issue No.566 |
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| Published in Cairo by AL-AHRAM established in 1875 | Current issue | Previous issue | Site map | ||
Plugging the gaps
THE CENTRAL Bank of Egypt (CBE) injected $250 million into the market this week to meet demand for the dollar. The bank had pumped a similar amount into the market just before the Eid Al-Fitr holiday following its announcement that it was raising the central rate for the dollar to LE4.50, up from LE4.15, the central rate in force since August. The exchange rate is permitted to fluctuate three per cent above or below the central rate.
The CBE's injection came not a moment too soon. Although the new rate was only announced two weeks ago, the dollar has been trading at LE4.635, the maximum rate allowed. Observers attribute the increase in the price of the dollar to unmet demand prior to CBE's move this week.
To ensure a constant supply of the dollar, the cabinet was scheduled to meet this week to look into procedures to make the hard currency available for the import of capital goods and production inputs. The cabinet will explore procedures to prevent speculation on the dollar.
A taxing new year
THE SALES Tax Authority has issued a detailed guide to acquaint traders and service providers of the procedures for paying sales taxes and the penalties for evasion.
According to Mahmoud Mohamed Ali, head of the Sales Tax Authority, the second and third phases of the sales tax, which went into effect in June, are applicable for retail and wholesale traders whose annual revenue is LE150,000 or more, as well as manufacturers and service providers whose annual revenue is LE154,000 or more. "Traders should apply for registration at the authority once they reach the afore- mentioned levels. Any failure to register will be treated as tax evasion," said Ali.
Taxes are due within 60 days after a business files its tax records with the authority. According to Law 11 of 1991, businesses are to keep their tax records for three years after making their payments to the authority.
The guide also explains the penalties for filing late or falsifying revenue information. Filing late carries a penalty ranging from LE100 to LE2,000. Penalties for evasion are much harsher, including imprisonment for a month or longer as well as a LE5,000 fine. The penalties are doubled for repeat violators.
Although the application second and third phases of the sales tax started seven months ago, businesses were given a grace period for filing their taxes that ends 1 January 2002. The grace period was offered to give businesses time to learn about the requirements of the new tax.
Meanwhile, the Tax Authority has embarked on an awareness campaign to encourage consumers to ask for invoices for their purchases.
"The authority has issued a list of the tax-exempted products for consumers' information," said Ali.
Tax-exempted goods include foodstuffs such as milk products, oil and sugar. Among the other items on the list are tobacco products, natural gas, paper and certain medicines.
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