The Egyptian Cabinet has approved a draft law to remove the Value-Added Tax (VAT) exemption on natural gas.
Under the new legislation, natural gas will be subject to a schedule tax of EGP 20 per 1,000 cubic feet, a move designed to strengthen state revenues and expand the national tax base.
This policy shift is a core component of the government’s broader fiscal strategy for the upcoming 2026/2027 fiscal year.
By reviewing long-standing tax treatments and reducing exceptional exemptions, the government aims to boost public treasury resources to EGP 3.5 trillion, effectively helping to narrow the projected EGP 2.7 trillion financing gap.
While the amendment removes specific exemptions, it also introduces measures to bolster local industry.
The draft law extends the VAT suspension period for imported machinery, equipment, and medical devices to four years.
By easing these administrative burdens, the government intends to prevent capital tie-up and provide local manufacturers with the necessary financial flexibility to scale operations.
This legislative update reflects Egypt’s ongoing efforts to streamline its tax framework, balancing the need for increased fiscal stability with initiatives that support industrial growth and private sector investment.
