ETA Head Rasha Abdel-Aal: Proposed VAT Amendments to Slash Medical Equipment Tax to 5% and Exempt Kidney Dialysis Inputs
Rasha Abdel-Aal, Head of the Egyptian Tax Authority (ETA), confirmed that the draft amendments to the Value Added Tax (VAT) law, currently under discussion in the House of Representatives, introduce several tax facilities and remedies aimed at supporting both the service and industrial tracks of the healthcare sector, while alleviating financial burdens on entities operating within this vital field.
Abdel-Aal explained that the draft law outlines subjecting medical equipment to a reduced VAT rate of 5% instead of the standard 14%. This measure is designed to boost the healthcare ecosystem and lower operational and production costs tied to medical devices and supplies.
The ETA Head added that the proposed amendments also eliminate the tax burden on kidney dialysis machines and dialyzers. This is achieved by fully exempting the manufacturing inputs of dialysis supplies, parts, and equipment from VAT, a step intended to support medical services provided to patients and curb costs for healthcare providers specializing in this field.