Egypt’s Sisi approves tax sukuk proposal

Egyptian President Abdel Fattah El-Sisi approved a proposal on Monday to issue tax sukuk that would allow taxpayers to offset proceeds against future tax liabilities, as the government seeks to reduce financing requirements and debt-service costs.

Sisi approved the proposal during a meeting in New Alamein with Prime Minister Moustafa Madbouly and Finance Minister Ahmed Kouchouk.

According to a presidential statement, the proposed tax sukuk will provide investors with a “good and appropriate” return, while the proceeds would help reduce the government’s financing needs and, consequently, its debt-service bill.

Kouchouk also briefed Sisi on the implementation of a package of real estate tax relief measures, including a mobile application designed to simplify tax procedures.

A similar application for real estate transaction taxes is expected to be launched in the coming days, Kouchouk said.

The minister said laws covering Egypt’s second package of tax relief measures had entered into force after receiving presidential approval. The package aims to simplify tax procedures, reduce the burden on businesses, and improve the competitiveness of the economy.

Kouchouk said the business community had responded positively to the government’s tax relief measures, contributing to strong growth in tax revenues during the previous financial year.

Sisi directed the government to continue improving the tax system and services, introduce additional incentives, and strengthen investor confidence.

He also ordered the launch of a third package of tax relief measures, the presidential spokesman said.