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Egypt stock market plunges, suspends trades following reports of new capital gains taxes

Egypt's stock market has seen a sharp plunge that forced a temporary suspension of trading after reports of a newly proposed government tax on capital gains.

The EGX30 index closed Sunday 4.22 percent lower, or at 7,894.7 points, continuing to slide after trading was suspended for half an hour on the Egyptian Exchange after the broader EGX100 index fell by 5 percent.

The market slide was sparked by an announcement from the finance minister that the government will impose a 10 percent tax on net realized portfolio profits at the end of the year. Stock market profits are currently tax-free.

The exchange said the law has been sent to the interim president for approval. Since Egypt's 2011 revolt, consecutive governments have struggled with shrinking revenues and bloated public expenditures.