Egypt to implement new tax system by 2020: Ma'it

CAIRO - 17 December 2018: Minister of Finance Mohamed Ma'it said that Egypt will implement a new tax system by June 2020 that encourages investing in Egypt and eases dealing with all investors.

He added during a seminar held at the American Chamber (Amcham) that the ministry seeks to issue small and medium tax treatment law in order to encourage informal economy to enter the tax system.

The minister noted that most of the Egyptian economy is outside the formal tax framework.

Ma'it clarified that the ministry is working on setting an electronic tax operation system, and restructuring the Tax Authority to overcome obstacles that may arise and avoid problems in the tax value estimations.

He affirmed that Egypt is determined to complete the economic reforms, clarifying that these efforts will be reflected on Egypt's presence in the international economy to reach the economic development that Egypt aspires to.

Egypt embarked on a bold economic reform program that included the introduction of taxes, such as the value-added tax (VAT), and cutting energy subsidies, with the aim of trimming the budget deficit.

The country floated its currency in November 2016 before it clinched a $12 billion loan from the International Monetary Fund (IMF).

Previously, Egypt conducted financial treatments of treasury bills and bonds' taxes. Ma'it revealed that the reason behind the financial treatments of T-bills’ taxes is that it’s one of the rights of the treasury.

Ma’it referred that the share of the treasury from the taxes wasn’t collected before.
He clarified that the taxes of T-bills are determined at 20 percent and the taxes of the profits are at 22.5 percent.

Financial modifications on T-bills save treasury rights: Min.

CAIRO-2 December 2018: Minister of Finance Mohamed Ma'it revealed the reason behind the financial treatments of T-bills' taxes, saying that it's one of the rights of the treasury. Ma'it notes the share of the treasury from the taxes wasn't collected before.

“The move ensures tax equality with regards to financial institutions' investment in
government securities and asserts the fair collection of taxes due on profits earned from the rest of their activities,” the minister added.

Egypt to achieve GDP of 5.3% in 2017/18

CAIRO - 4 December 2018: Minister of Finance Mohamed Ma'it said that Egypt achieved an increase in the gross domestic product (GDP) to 5.3 percent in 2017/2018, up from an average of 2.3 percent between 2011 and 2014. The minister added that Egypt targets a growth rate of 5.8 percent during the current fiscal year 2018/2019.