Egypt’s tax revenue rises 28% without new levies, minister says
Egypt’s tax revenue rose 28 per cent in the last fiscal year without imposing new taxes, reflecting stronger economic activity and improved taxpayer compliance following the government’s tax facilitation initiative, Finance Minister Ahmed Kouchouk said on Tuesday.
Kouchouk made the remarks during the inaugural meeting of a joint committee between the Finance Ministry and the Egyptian Exporters Association (Expolink), where he said the government remained committed to structural reforms to improve the business environment and support private-sector growth.
He said the tax facilitation initiative had strengthened business confidence and contributed to higher tax revenues without increasing the tax burden on taxpayers.
“The business community responded positively and with great confidence to the tax facilitation initiative,” Kouchouk said.
The minister said the government would continue engaging with exporters and investors to address business challenges and ensure that economic reforms translate into tangible results.
The committee, formed by the Finance Ministry and Expolink, aims to strengthen cooperation with exporters, identify tax and customs challenges facing businesses, and support policies that encourage exports and investment.
Rasha Abdel Aal, head of the Egyptian Tax Authority, said the government’s second package of tax facilitation measures would further strengthen trust between the tax authority and taxpayers by providing additional incentives and simplifying procedures.
She said the authority is ready to implement the package immediately once the necessary legislation is approved, noting that several facilitation measures have already been introduced without requiring legislative amendments.
The proposed package includes extending the tax dispute settlement law until the end of December, allowing taxpayers to deduct the solidarity contribution from taxable income. It includes extending the suspension of value-added tax (VAT) on machinery and equipment used in industrial production from two years to four.
The measures form part of Egypt’s broader efforts to improve the business climate, encourage investment and support export-led growth.
Attribution: Amwal Al Ghad English