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World

Egypt's stock market rises after government suspends 2-year tax imposed on capital gains

Associated Press
Published | Updated
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    FILE - In this Tuesday, June 26, 2012 file photo, an Egyptian trader checks a monitor at the Egyptian Exchange in Cairo, Egypt. On Monday, May 18, 2015, Egypt's government suspended a tax imposed on the market's capital gains for two years, causing shares to rise in early trading. (AP Photo/Amr Nabil, File) (The Associated Press)

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    FILE - In this Nov. 27, 2014 file photo, Egyptian traders work on the floor of the stock market, in Cairo, Egypt. Egypt’s government on Monday, May 18, 2015, suspended a tax imposed on the market’s capital gains, for two years causing shares to rise in early trading. The suspension comes nearly a year after President Abdel-Fattah el-Sissi approved the law, which put 10 percent tax on capital gains that fueled a sell-off by investors. Some investors went to courts to abolish government’s law. (AP Photo/Amr Nabil, File) (The Associated Press)

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    FILE -- In this Jan. 21, 2013 file photo, Egyptian traders work at the stock market in Cairo, Egypt. Egypt’s government on Monday, May 18, 2015, suspended a tax imposed on the market’s capital gains, for two years causing shares to rise in early trading. The suspension comes nearly a year after President Abdel-Fattah el-Sissi approved the law, which put 10 percent tax on capital gains that fueled a sell-off by investors. Some investors went to courts to abolish government’s law. (AP Photo/Amr Nabil, File) (The Associated Press)

CAIRO – Egypt's government has suspended a two-year tax imposed on the market's capital gains, causing shares to rise in early trading.

Cabinet spokesman Hossam el-Qaweish said on Monday that the decision was aimed at preserving the "competitiveness of the Egyptian financial market." He says the measure is part of the ongoing efforts to achieve economic reforms while taking into consideration impact of such measures on the general investment atmosphere.

Immediately after the announcement of the suspension, Egypt's EGX 30 index rose 3.3 percent to 8562.07 according to Egypt's official news agency.

The suspension comes nearly a year after President Abdel-Fattah el-Sissi approved the law, which put 10 percent tax on capital gains that fueled a sell-off by investors.

El-Qaweish says a 10 percent tax on stock dividends will remain in place.