Egypt has put a 10 per cent tax on capital gains on hold for two years, but a 10 per cent tax on stock dividends will remain, the government said in a statement, confirming a Reuters story.

Government spokesman Hossam Al-Qawish said in a statement that suspending the capital gains tax was meant "to preserve competition in the Egyptian bourse... as part of ongoing efforts at economic reform".

The taxes, approved by President Abdel Fattah Al-Sisi last July as part of efforts to overhaul an economy battered by years of political turmoil, were challenged in court last month.

Critics said an unclear collection mechanism was creating uncertainty in the market and hampering investment. - Reuters