Egypt’s tax revenues have seen a significant rise, surpassing LE 715 billion in the first five months of the 2024/2025 fiscal year, a growth of 39 percent compared to LE 516 billion during the same period last year, according to government sources quoted by Al-Borsa.
The Ministry of Finance exceeded its November tax revenue target by 41 percent, driven by initiatives to enhance revenue collection, broaden the tax base, and eliminate exemptions for state entities involved in investment and economic activities.
These measures were complemented by the digitization of payroll tax systems for public and private sector employees, as well as increased revenues from treasury bills, bonds, and economic authorities.
Currency exchange rate fluctuations also played a role, with the Egyptian pound shifting from LE 31 to around LE 48 per US dollar during the reporting period.
This enabled the government to generate higher tax revenues on foreign currency income, including earnings from foreign oil companies operating in Egypt and the Suez Canal. However, revenues from the Suez Canal declined due to the ongoing conflict in Gaza.
To meet its ambitious tax revenue goals, the Ministry of Finance has prioritized improving tax administration and unifying processes across all tax departments.
The establishment of an Advance Rulings Unit now provides binding decisions on the tax treatment of future transactions, supporting transparent and law-compliant investment feasibility studies.
In addition, the ministry has introduced a simplified tax system for micro, small, and medium enterprises with revenues of up to LE 15 million and is expanding taxation on e-commerce.
The Ministry of Finance aims to achieve LE 2.02 trillion in tax revenues for FY2024/2025, a significant increase from LE 1.5 trillion in the previous fiscal year.
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