Egypt works on injecting more private investment flows into economic arteries: Maait

CAIRO - 12 May 2024: Recent years have witnessed the implementation of numerous reforms aimed at empowering the private sector, Egypt’s Minister of Finance, Mohamed Maait. Said Sunday.

 

Maait referred to the competition law which can enhance the competitive neutrality.

 

He pointed out to the challenges faced by the business community in the last 2 years which are: the flexibility of exchange rate and availability of foreign currency

 

“We are still working on developing the customs clearance quicker and more efficiently,” Maait said.

 

He added that the government is working on upgrading tax procedures to be fully automated. “Egypt will release the tax strategy for the coming six years very soon to have a clearer tax vision with a better certainty.”. 

 

Maait said that the goal of the reforms is to inject more private investment flows into Egypt's economy and achieve more sustainable economic growth, led by the private sector in the upcoming period. 

 

The minister stated that they are ready to adopt any effective initiatives that enhance the contributions of the private sector to developmental and economic activities.

 

This came during the Minister of Finance's participation in a panel discussion on "Public meets Private Sector: Unlocking Sustainable Investment in Egypt" during the International Finance Corporation (IFC) day in Egypt. The session was attended by Hala El-Said, Minister of Planning and Economic Development, Rania Al-Mashat, Minister of International Cooperation, and Tarek Tawfik, President of the American Chamber of Commerce.

 

Maait mentioned that they are working on comprehensive stimulus packages to attract both local and foreign private sectors for production and export in Egypt. 

 

He highlighted that the reduction of the "import tax" category on more than 150 items of production supplies has aided in stimulating local manufacturing. Additionally, the abolishment of preferential tax and customs treatments for state entities or companies has also contributed to enhancing competitiveness in the Egyptian market and preserving fair opportunities for all investment and economic activities.

 

Furthermore, they are working on automating all tax processes, simplifying customs procedures, and developing a pre-shipment registration system to achieve justice and incentivize investment. 

 

He explained that the Supreme Tax Council grants the business community a greater opportunity for tax dialogue with the government, as it includes heads of "industrial," "commercial chambers," and "investors" unions, along with representatives from business communities, tax associations, and accountants. This makes financiers participate in shaping tax policies and monitoring their implementation through more effective and sustainable institutional mechanisms, as all state agencies are committed to implementing the decisions and recommendations of this council. The council, which has broad powers, aims to establish a more advanced and investment-stimulating tax system sustainably, and also works on regulating the relationship between investors and the state in the tax field.

 

The Minister of Finance pointed out that the "Tax Policy Document" to be presented for societal dialogue will help investors gain tax certainty over the next six years and make decisions regarding their investment activities.