Arab Finance: Egypt's Cabinet approved a draft law to cancel the value-added tax (VAT) exemption on natural gas, making it subject to a schedule tax of EGP 20 per 1,000 cubic feet as part of efforts to strengthen state revenues and broaden the tax base.

The proposed amendments form part of the government's wider fiscal strategy to increase tax revenues to EGP 3.5 trillion during the upcoming fiscal year (FY) 2026/2027 while reducing the estimated financing gap of around EGP 2.7 trillion.

The government said the move is aimed at enhancing public treasury resources and reviewing a number of special tax treatments that have remained in place for years.

The amendments also target certain goods and services that have previously received exceptional tax treatment, as part of a broader review of tax exemptions and incentives.

In a measure intended to support local industry, the draft law extends the maximum period for suspending VAT payments on machinery, equipment, and medical devices to four years. The government added that the extension is designed to support local manufacturing and prevent investors' capital from being tied up due to administrative procedures.