Minister of Finance, Ahmed Kouchouk, has said relying on the private sector to drive growth and boost the competitiveness of the Egyptian economy has always been’ a winning strategy.”
Addressing an iftar hosted by the Alexandria Businessmen Association, Kouchouk noted that the government’s economic ministerial group is hard at work to expand the private sector’s role and strengthen partnerships with investors through initiatives that encourage investment.
Private investments rose by 73 per cent during the last fiscal year and increased by 42 per cent in the first quarter of the current fiscal year, reflecting positive momentum within the business community, Kouchouk said.
The first package of tax incentives showed strong engagement from the private sector, with more than 600,000 taxpayers voluntarily submitting new or amended tax returns and paying additional taxes worth about LE80 billion while declaring business volumes totalling around LE1 trillion, he added.
The minister also noted that tax revenues grew by 35 per cent last year and by 31.5 per cent during the first eight months of the current fiscal year without any increase in tax rates. He said the government held more than 40 community dialogue meetings on the second package of tax incentives and launched a “Distinction Card” for compliant taxpayers, giving them priority in tax refunds, audits and advance rulings.
He added that facilitated financing will be offered to the first 100,000 joining the simplified tax system.
Kouchouk announced plans to launch three advanced tax service centres operated by e-Tax on behalf of the Egyptian Tax Authority, while addressing double taxation between subsidiaries and holding companies.
He also revealed incentives to encourage large firms to list on the Egyptian Stock Exchange, the launch of a mobile application for real estate transaction tax, an exemption for property sales between first-degree relatives, a reduction of VAT on medical equipment from 14 per cent to 5 per cent, and tax exemptions for electronic payment services, along with allowing companies involved in strategic projects to deduct returns on foreign loans from their tax base.
