The government will continue structural reforms to lay the foundations for an environment attractive to investment.
This statement by Minister of Finance Mohamed Maeet came during a forum organised by the Canada-Egypt Business Council on Tuesday.
The government will adopt a series of initiatives to support businesses in order to increase incentives for investors and enlarge the role of the private sector in development process.
More than LE28 billion was disbursed to exporters out of their arrears and accrued dues with the Export Development Fund during the period from March 2020 to June 2021, the minister said.
Some LE8 billion was allocated in the budget for this fiscal year to support exports to restore the necessary cash flow to boost economy and maintain employment in view of the negative repercussions of the coronavirus pandemic on major economies.
Around LE358 billion from the budget for the current fiscal year financed public investments, national projects and infrastructure improvement, the minister said.
In turn, this contributes to achieving development goals, raising living standards, and improving public services, Maeet said, noting that LE500 million was invested in support for vehicle exporters in Egypt, which reflects the government’s eagerness to stimulate exports and sharpen the competitive edge of Egyptian products in global markets.
This will help localise advanced industry and technology, bridging the gap between exports and imports in addition to achieving self-sufficiency, Maeet said.
Maeet affirmed that the government has no intention to impose any new taxes as of yet.
“Rather, we are working hard to strengthen governance, raise the efficiency of tax collection, and expand the tax base by integrating the informal economy into the formal through the broader application of technological solutions,” Maeet said.
The government is proceeding with the digitisation of the tax and customs systems and use artificial intelligence in tax management by 2022 to ensure that all commercial transactions are monitored online.
The state is well on the way to digitising the Egyptian Tax Authority (ETA) and has the tools to incorporate all businesses in the state system, Maeet said, adding that the electronic invoice is one of the tools that will show economic indicators through the sales operations electronically.
The application of the e-invoice system will be gradually made mandatory for all the business community, he said.
The minister said that local economic performance in light of the coronavirus crisis had exceeded all expectations, according to the testimony of giant international financial institutions.
According to the International Monetary Fund, Egypt was one of the most efficient countries in spending the proactive package to support business during the Covid-19 pandemic.
Egypt was among the few countries that maintained positive economic growth of 3.3 per cent for fiscal year 2020-2021, the minister said.
Last financial year, government debt was down to 7.4 per cent, compared to 12.5 per cent in 2015-2016.
The annual budget’s revenues also increased by 12.2 per cent, according to the minister.
He also said that Egypt managed to accumulate around 2 per cent of initial surplus in FY2020/21, as opposed to the initial deficit of 3.5 per cent reached in FY2015/16.
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