Proposed VAT amendments to support healthcare services, medical manufacturing: ETA head

Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), said the draft amendments to the Value Added Tax (VAT) Law, currently under discussion in the House of Representatives, include a number of tax incentives and measures aimed at supporting the healthcare sector in both its service and manufacturing capacities, while reducing financial burdens on entities operating in this vital field. She explained that the proposed amendments provide for a reduced VAT rate of 5% on medical devices, down from the current 14%, a move expected to support the healthcare sector and lower operating and production costs associated with medical equipment and supplies. Abdel Aal added that the draft legislation also seeks to eliminate the tax burden on dialysis machines and kidney filters by exempting manufacturing inputs used in the production of dialysis equipment, components, supplies, and kidney filters from VAT. The measure is intended to support the provision of medical services to patients and reduce costs for businesses operating in this sector. She emphasised that the proposed amendments are consistent with the state’s broader strategy to support sectors with significant social and healthcare dimensions, while encouraging the growth of domestic medical industries and enhancing the healthcare sector’s capacity to deliver medical services more efficiently. According to Abdel Aal, the amendments reflect the government’s commitment to improving access to healthcare services, strengthening local manufacturing capabilities, and creating a more supportive environment for investment in the medical sector.  The post Proposed VAT amendments to support healthcare services, medical manufacturing: ETA head first appeared on Dailynewsegypt.