Finance Minister Ahmed Galal held a meeting on Wednesday with the delegation of International Monetary Fund (IMF), which arrived in Cairo yesterday in its first visit to Egypt since the June 30 Uprising.
According to the ministry’s press statement issued today, the delegation discussed with the minister providing Egypt with the technical support to introduce the new Value Added Tax (VAT) as a replacement to the current sales tax.
The Finance Minister stressed the importance of implementing VAT system, considering it fairer then the currently applied system of sales tax, especially as the former type is adopted in most of the world countries.
This step is part of the ministry’s tax reform program that is carried out within the framework of the country’s economic and social reform plan, Galal said.
He indicated that the ministry had requested technical assistance from IMF after Egypt’s decision to reduce its representation in the IMF and World Bank’s annual meetings and to not to require the IMF loan.
Galal had stated in July that Egypt was not looking at the IMF loan as “a matter of life or death”, but considered it as useful if carried out using Egypt’s terms.
The IMF delegation, which is paying a 3-day visit to Cairo, includes the head of the delegation Michael Keen – Assistant Director in the Fiscal Affairs Department (FAD) of the International Monetary Fund; Egyptian Economist Dr. Abdel Moneim Abdel Rahman, technical advisor Mick Thackray, and Lorenzo Forni – Advisor at FAD of the IMF.