Egypt to implement 1st package of tax reforms soon – FinMin

Egypt’s Finance Minister Ahmed Kouchouk on Tuesday announced that the first package of tax reforms will be fully implemented within the current fiscal year.

Speaking at the Egyptian Tax Association conference, Kouchouk emphasised that the country aims to build a balanced tax system that strongly supports the business community and investment, and stimulates economic growth.

“These reforms aim to provide more liquidity to businesses, expedite the resolution of long-standing tax disputes, offer improved and simplified services, streamline tax filings, and conduct sample-based audits for taxpayers across all tax centres and offices.

He emphasised that everyone will benefit from the government’s priority of integrating the informal economy into the formal tax system and broadening the tax base. Collaboration with various entities and institutions will help encourage and incentivise informal businesses to join the formal tax system.

The minister explained that there will be evaluation and monitoring systems in place, involving independent, neutral parties to ensure the continuous improvement of the tax system. He also stressed the importance of investing heavily in human capital, linking incentive systems to performance, and achieving the objectives of the tax facilitation package. Additionally, effective media communication will be used to promote sound tax practices among both taxpayers and the general public.

The minister also said that the government is focused on improving public finances to create fiscal space for supporting and stimulating industry, exports, and productive sectors. He noted that they are working on a proactive strategy to reduce debt and create financial room to enhance social protection programmes.

Attribution: Egyptian Cabinet

Subediting: M. S. Salama