The tourism sector is the most suffering operation from the situation in Egypt. There must be an urgent plan to rescue the tourism sectors by cooperation between government with business associations and chambers of tourism to achieve a quick plan for tourism sector to survive and promote the sector.

Government should cooperate with the Ministry of Interior and cities councils to get policemen back on the streets and increased as much as possible in the tourist cities because without security - no tourists.

Government should think again on fees and tax load on the tourism sector at the moment. And postpone payments until tourism recovering also should activate the law of added value to discount the value of inputs from the sales tax so that there is double in the tax or reduce the search category sales tax on the tourism sector to be 5%  like before increased to be 10%.

Government also should deduct paid amount on capital goods (on tourism field like hotel furniture, equipment and supplies) instead of limiting it to only electrical equipment as now.

Government should extend the period for filing sales tax to be within 90 days instead of 60 days to have the chance to collect the value of sales from abroad.

Also government should think of the possibility to postpone the income tax payment from the 2011 until the end of 2012.

The government should encourage banks to finance tourism projects.

The private sector (businessmen) and the chambers of tourist should support the tourism sector.

Tourism companies should prepare the tax declaration according to the requirements of the law no. 91 of 2005 based on full and complete invoices to not be under tax estimation.

Also chartered accountant and taxation companies should provide full technical support for the tourism industry.

By Ashraf Kabil     This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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Published in Jan/Feb 2012 edition of Red Sea Bulletin