(Refiles to change dateline to Cairo)
CAIRO May 30 Egypt will exempt bonus shares
from a new 10 percent capital gains tax on profits made on the
stock market, the country's Finance Minister Hany Dimian said.
On Thursday Dimian said Egypt had approved the introduction
of the tax, part of the first phase of income tax reforms it
expects to bring in 10 billion Egyptian pounds ($1.4 billion).
"Distributions of bonus shares will be exempt from the
taxes," Dimian told Reuters by phone late on Thursday after a
meeting with government finance officials.
Profits from the stock market are currently tax free, and
Dimian has said the new tax will not be retroactive.
Egypt is eager to encourage investment but is also trying to
find additional revenue sources after more than three years of
economic and political turmoil since a popular uprising toppled
President Hosni Mubarak in 2011.
Abdel Fattah al-Sisi, the former army chief who toppled the
country's first freely-elected leader after protests last year,
won a presidential election with more than 90 percent of the
vote this week, according to provisional results.
(Reporting by Ehab Farouk; Writing by Alexander Dziadosz;
editing by Susan Thomas)