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CAIRO – 7 March 2018: Minister of Finance Amr el-Garhy said that the trade deficit improved by 20 percent as a result of the current revenues’ decline to $55 billion from $70 billion.
The minister added during his speech at "Combating Tax Evasion Conference" that tourism revenues are currently standing at $18-19 billion.
Garhy noted that public debt doubled five times during the last 10 years, pointing out that Egypt included the necessary policies in the economic reform program to return the inflation back to accepted levels.
The minister stated Monday that taxes represent 72 percent of the estimated budget of fiscal year 2017/2018.
"We seek to simplify the tax system, implement a policy to protect taxes and promote growth,” the minister added.
He clarified that the reform agenda included the value-added taxes (VAT) and the increase of taxes on alcohol.
He noted that the development process also requires improvement of policies and developing individuals' skills, revealing that the rules of pricing modifications will be issued in 2018.
Meanwhile, Minister of Industry and Foreign Trade Tarek Kabil said on February 27, that the trade deficit shrank by 35 percent over the past two years to stand at $20 billion, down from the worst level of $53 billion in 2015.
The Central Agency for Public Mobilization and Statistics (CAPMAS) revealed Sunday that Egypt’s balance of trade deficit increased 13.8 percent in December 2017, recording $3.3 billion, compared to $2.9 billion in the same month of 2016.
"Combating Tax Evasion Conference" is held by the Ministry of Finance, in cooperation with the Organization for Economic Co-operation and Development (OECD).
It discusses the comprehensive framework of plans to prevent the evasion of taxes, transfer profits, and the mobilization of domestic resources in Egypt.