Today, President Abdel Fattah El-Sisi met with Prime Minister Dr. Mostafa Madbouly and Minister of Finance Mr. Ahmed Kouchouk.
The Spokesman for the Presidency, Ambassador Mohamed El-Shennawy, said the meeting reviewed the key features and details of the second tax facilitation package, titled supporting and stimulating tax compliance. This package is part of a broader tax facilitation strategy that includes four packages; the first aims at opening a new chapter and building trust between the Tax Authority and taxpayers, and the second aims at stimulating tax compliance while continuing to support and simplify procedures, enhance automation, expand the base, and ensure tax compliance in future packages.
The Minister of Finance noted that the second package targets all segments of the tax-compliant community and aims to support compliant taxpayers through tax benefits and facilitations that enhance trust, promote voluntary compliance, help businesses grow, support their competitiveness, and guarantee the rights of taxpayers while ensuring liquidity for both taxpayers and companies. He also presented efforts to complete the tax reform process to encourage investment, within the framework of a “Trust Partnership” with the business community, through the launch of the tax facilitation initiative, which has proven successful in the first package.
Mr. Kouchouk pointed out that this initiative had presented a successful model for the desired change for the benefit of the business community and the Egyptian economy. A total of 400,000 cases in which old files were voluntarily closed, and 650,000 taxpayers filed new or amended returns with additional taxes of around 78 billion Egyptian pounds. Additionally, new and additional business volumes totaling about one trillion pounds were reported.
The Minister of Finance also highlighted the second package’s focus on improving the efficiency of the Value Added Tax (VAT) refund system, launching premium tax service centers, and introducing a series of incentives for tax-compliant individuals, along with several other reforms addressing requests from the business community, taxpayers, accountants, and tax experts.
The President gave directives to launch the second tax package, while emphasizing the importance of continuously developing the tax system, building new relationships based on trust, credibility, and certainty, improving all tax services, providing additional facilities, and fostering trust with investors.
The Minister of Finance also reviewed developments in the preparation and implementation of property tax facilitation measures. He explained that the tax vision aims to reduce the tax burden, considering both the social and economic aspects, simplify tax procedures, implement digital transformation, and address the cons identified through practical application. The facilitations offered by the state include simplifying tax returns, extending the assessment and collection period to seven years, raising the exemption threshold for private housing, suspending or waiving taxes in times of crisis, eliminating tax debts and late fees in specific cases, improving the tax appeal process, introducing electronic tax payments, and setting a cap on late fees not exceeding the principal tax amount.
The meeting reviewed the financial and economic performance and efforts to regain investor confidence, in line with a comprehensive and consistent economic vision to increase the competitiveness of the Egyptian economy. The Minister confirmed that economic activity is moving in a positive direction, with private investments growing by 73% in the last fiscal year, noting balanced and encouraging indicators that help restore investor confidence in the Egyptian economy. He emphasized the commitment to maintaining a large primary surplus to increase spending on human development and social protection programs, and to effectively contribute to stimulating manufacturing and exports.
The Minister of Finance reviewed the plan to develop the customs system, which was prepared in full cooperation between the Ministry of Finance (Customs Authority) and the Ministry of Investment and Foreign Trade. The plan reflects the needs of production projects and business chambers, aiming to address the challenges faced by the business community and implement policies that support and encourage investors. This will contribute to increasing exports and enhancing the competitiveness of the Egyptian economy through simplifying procedures and developing the customs system.
The Minister outlined three key areas of the customs development plan: reducing customs release times, facilitating and automating the customs system, and strengthening control measures to limit smuggling. He mentioned plans to apply a unified and fast inspection system, expand pre-clearance procedures, accept electronic payments, and train customs staff to improve their technical capabilities.
The Minister of Finance presented efforts to reduce the budgetary debt-to-GDP ratio as a national priority, stressing the continued implementation of the budget debt management strategy. He added that the private sector has shown strong confidence in the potential of the Egyptian economy and investment climate, leading to major investment deals such as the “Ras El-Hekma” and “Alam El-Roum” projects.
President El-Sisi emphasized the need to build on the current improvement in economic indicators and work towards increasing private investments to confirm the private sector’s ability to drive growth and development. The President also stressed the importance of investing in human resources through innovative programs and initiatives, alongside training, to ensure performance improvements that serve the economy. Furthermore, President El-Sisi underscored the importance of taking necessary measures to implement digital transformation in the Ministry of Finance’s operations, including in customs and taxes, while stressing continued governance in all procedures.
Distributed by APO Group on behalf of Presidency of the Arab Republic of Egypt.
