Egypt’s Govt Expects Around $3 Bln In Revenues After Settling Tax Disputes

Egypt’s tax authority expects to take around LE20-LE25 billion ($2.8-$3.6 billion) in revenues upon the implementation of presidential decree 163/2013, the Ministry of Finance stated on Thursday.

The new decree creates a mechanism to settle outstanding disputes between the government and taxpayers.

Around 20,000 cases regarding disputed taxes stretching back to 2003, worth LE40 billion ($5.7 billion), are awaiting court verdicts. The reconciliation law aims to save time, according to the statement.

Each taxpayer with a dispute is required to provide a certificate showing the current state of the issue within the judicial system. Accordingly, the tax authority will refer the case to a new committee, established by the presidential decree.

Under the new reconciliation law, taxpayers will have the opportunity to pay their levies by installments.

The committee has the right to hand the dispute to the courts once again if necessary.

Egypt’s tax revenues reached LE80.3 billion ($11.7 billion) for the period July to December 2013, indicating a 19 percent increase from the same period in the previous year

The tax revenue target for the current fiscal year is LE325 billion ($47.2 billion), which contributes 62 percent to the overall government budget.

Source: Ahram Online