EGPC to Absorb New Natural Gas Tax as Egypt Targets EGP 40 Bn Revenue

The Egyptian General Petroleum Corporation (EGPC) will absorb the new natural gas tax, a move aimed at generating EGP 40 bn in revenue for the government. The EGPC will issue e-invoices and forward the owed tax to the Egyptian Tax Authority within 10 days of each payment becoming due.

This arrangement echoes how another dispute was resolved last year, when the Finance Ministry's decision to impose a 10% VAT on crude oil sales triggered a stand-off over who should issue the e-invoices. The Tax Authority eventually ruled that the EGPC would remit the tax on behalf of oil companies and give them clearance.

The business-to-business tax means nothing changes for household gas bills, as the entity buying the gas, not the end consumer, is on the hook.