Finance Minister announces tax reforms, boost for private sector growth

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Sun, 15 Dec 2024 - 09:39 GMT

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Sun, 15 Dec 2024 - 09:39 GMT

CAIRO - 15 December 2024: Egypt’s Minister of Finance, Ahmed Kouchouk, announced that significant tax service improvements will be implemented by the end of the fiscal year. He assured the business community of a new era of trust, partnership, and clear collaboration with the Tax Authority.
 
Speaking to the parliamentary bloc of the Republican People’s Party at the New Administrative Capital, Kouchouk outlined key reforms, including the reinstatement of sample audits for all taxpayers and the pilot launch of the Centralized Electronic Clearing System. This system will allow businesses to offset government dues with receivables, easing financial pressures and improving cash flow.
 
The minister emphasized that integrating the informal economy will be a gradual process supported by improved tax practices and targeted assistance for all taxpayers. He stated that the government aims to create an environment where investors can achieve strong profits within a transparent framework of rights and obligations, fostering a productive partnership with the Tax Authority.
 
Kouchouk highlighted a recent Tax Authority initiative to revise administrative decisions, calling it a strong signal of the government’s commitment to boosting investment. He also announced new measures to simplify customs and property tax procedures, making processes easier for citizens and businesses alike.
 
He underlined the private sector’s vital role in driving economic growth and revealed ongoing efforts with the Minister of Investment and Foreign Trade to reduce fees, streamline collections, and enhance investor relations. Kouchouk noted increased interest in public-private partnership (PPP) projects, particularly in service sectors and renewable energy, as the government limits public sector investment to encourage private sector involvement.
 
The minister detailed plans to increase spending on education, social protection, and programs to stimulate production. He also highlighted the simplified tax system’s role in supporting entrepreneurship and digital exports, emphasizing the potential for growth in Egypt’s IT service exports, which require additional incentives to thrive.
 
Looking ahead, Kouchouk announced an ambitious export program for the next fiscal year, targeting increased export volume and diversity while penetrating new markets. He also committed to launching balanced initiatives to clear overdue export burdens for businesses quickly.
 
Kouchouk emphasized the importance of the Medium-Term Budgetary Framework in transitioning to performance-based budgeting, which aims to enhance spending efficiency and improve public services. He reaffirmed the government’s commitment to national dialogue, particularly with youth, to ensure the country’s economic priorities align with the needs of its citizens and investors.
 

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