Finance Min. reviews progress in digitalizing tax administrative system

CAIRO – 12 September 2020: Minister of Finance Mohamed Maait reviewed the executive stance of the national project aimed at modernizing and digitalizing the tax administrative system.

The tax administrative system is one of the main pillars of economic development, stimulating domestic and foreign investment, and maximizing state resources, while maintaining the stability of tax policies. 

The minister affirmed that the tax administration system is witnessing the largest "development revolution" during the era of President Abdel Fattah Al-Sisi, where historic reforms have been implemented that lead to broadening the tax base, laying foundations for tax justice, limiting the tax community more precisely, and integrating the informal economy into the formal economy.

This happens in a way that contributed to raising tax revenues 111% during the past four years, reflecting the improvement in economic performance and private sector activity as a result of implementing many tax reforms that stimulate investment, he said.

“In light of the efforts made to expand the tax base, we aim to increase the tax rate to the domestic product by 2.5 percent in 5 years from 14 to 16.5 percent, with an annual growth of 5 percent of the GDP, while maintaining the stability of tax policies,” he said.

The Minister further said that Egypt aims to build an integrated digital system to raise the efficiency of tax administration, adding that there is continuous coordination with the Ministry of Communications and Information Technology to take advantage of “artificial intelligence” in modernizing the tax administration system.

He indicated that an initiative will be launched to raise the efficiency of VAT collection.