Egypt's tax revenues hit LE 560.7B in first 4 months of 2024

Egypt’s Ministry of Finance has revealed a significant increase in tax revenues, with a rise of 38.3 percent, reaching LE 560.7 billion during the period from July to October 2024, compared to LE 405.5 billion in the same period of 2023.

 

This marks the highest growth in tax revenues in the past two decades, adding an impressive LE 155.2 billion to the national coffers.

 

The surge in revenues was attributed to broad-based growth across all types of taxes, supported by the economic recovery, resolution of the foreign currency crisis, and the continued modernization of the tax system. 

 

These efforts, including the digitization of tax operations, have helped streamline administration and widen the tax base.

 

Among the key contributors, tax receipts from sovereign entities increased by LE 37.4 billion (35.2 percent), totaling LE 143.7 billion, up from LE 106.3 billion last year. 

 

Meanwhile, tax revenues from non-sovereign entities saw a substantial rise of LE 117.9 billion (39.4 percent), reaching LE 417.1 billion compared to LE 199.2 billion in 2023.

 

Income tax revenue grew by 7.7 percent, amounting to LE 141.1 billion. 

 

This increase was driven by a rise in tax collection from wages and salaries, which climbed by LE 6.7 billion to reach LE 40.6 billion, and a boost in tax receipts from businesses, which rose by LE 2.8 billion to LE 16.4 billion. Corporate tax revenue also hit LE 79.6 billion.

 

The Value Added Tax (VAT) saw a 42.7 percent increase, totaling LE 261.2 billion. VAT on goods rose by 68.5 percent to LE 154.5 billion, while VAT on services grew by 22.2 percent to LE 29.7 billion.

 

Tax revenue from property transactions surged by 68.1 percent, reaching LE 118.9 billion, while taxes on international trade grew by 90.3 percent, totaling LE 39.6 billion. Non-tax revenues also increased by LE 19 billion, reaching LE 87.5 billion.

 

The Ministry of Finance reiterated its commitment to ensuring the stability of tax collection while creating a favorable investment environment. 

 

The ministry’s efforts are focused on building a balanced tax system that supports businesses and encourages both local and foreign investment.

 

Furthermore, the first phase of tax incentives has been launched as part of the government’s ongoing effort to improve the investment climate, with additional reforms expected to follow.