The Egyptian government plans to implement a value-added tax (VAT) on sugar starting in the 2025-2026 fiscal year, according to the analytical financial statement for the FY 2025/2026 draft budget currently under review by the House of Representatives.
The draft budget estimates approximately EGP 443 million in revenue from the newly proposed VAT on sugar—marking a notable shift from prior fiscal years, which reported no earnings in this category.
At present, sugar is exempt from VAT under Law No. 67 of 2016, which lists around 57 goods and services as tax-exempt. This list includes essential items such as tea, coffee, baby milk, eggs, and bread.
