Egypt foaming over alcoholic beverages revenue

CAIRO - 18 June 2019: The total tax revenues on locally produced beer, alcoholic beverages, and imported wines amount to LE1.5 billion, compared to L.E 28 million in the previous year, with an increase of LE 626 million.

The value added-tax (VAT) on non-alcoholic beverages is estimated at LE 1.3 billion, compared to LE 881 million in the previous year, with an increase of 60 percent.

The value added tax on locally produced wines including pure ethyl, converted wine, fresh grape juice, spiritual alcoholic beverages , sweetened and aromatic wine hits about L.E 349 million, compared to L.E 146 million in the prior fiscal year, with an increase of L.E 203 million.

In the same regard, former Minister of Finance Amr el-Garhy said that Egypt implemented a treatment plan for economic bugs during 2016 and 2017, which helped in achieving sustainable development goals, adding that boosting taxes' organizational work is one of the pillars of Egypt’s economic reforms.

Garhy stated that taxes represent 72 percent of the estimated budget of fiscal year 2017/2018, according to his speech at "Combating Tax Evasion Conference" held by the Ministry of Finance, in cooperation with the Organization for Economic Co-operation and Development (OECD).

The minister pointed out that the ministry seeks to enter into partnerships with international companies in the process of mechanization and development.

“We seek to simplify the tax system, implement a policy to protect taxes and promote growth,” the minister added.

He clarified that the reform agenda included the value-added taxes (VAT) and the increase of taxes on alcohol.