Egyptian Finance Minister, Ahmed Kojouk, announced that the government is nearing the completion of a new economic program, set to be discussed publicly with experts, business communities, and various organizations. This program comes as the current one with the International Monetary Fund (IMF) nears its end. Kojouk emphasized that Egypt's relationship with the IMF extends beyond financial assistance to include technical support.
During a meeting with the American Chamber of Commerce in Cairo, Kojouk highlighted the government's commitment to fiscal discipline and its targets. He noted that initial indicators show a decline in the government's central debt to less than 82% of GDP in the current fiscal year, with a goal to reduce it further to 78% next year. The minister also mentioned an increase in tax revenues and a rise in regular tax registrations without imposing new taxes or additional burdens on taxpayers.
Kojouk revealed significant progress in resolving tax disputes and reducing the country's external debt. He stated that nearly 200,000 tax disputes have been settled, and the external debt of the budget sector has decreased by about $6 billion over the past three years. The minister also emphasized the government's commitment to maintaining a stable international issuance plan, between $3 and $4 billion, to reinforce market confidence in the state's financial targets.
The minister discussed a new package of tax incentives that includes amendments to eight laws and five procedures to facilitate transactions. These measures include reducing the value-added tax on medical equipment, adjusting the tax system for stock exchange profits, and expanding the use of sample-based audits. Additionally, around 1.5 million real estate units have been voluntarily registered through the electronic real estate tax system.
Kojouk addressed outstanding issues, revealing that the ministry has received approximately 400,000 requests for tax dispute resolutions, with about half of them settled through mutually beneficial agreements. He aims to minimize the referral of disputes to external parties. The minister also noted that a legal amendment capping fines at the original due amount has helped reduce the liabilities of around 360,000 taxpayers by a total of 30 billion Egyptian pounds.
The minister highlighted the success of the simplified tax system, which has attracted around 110,000 new taxpayers with annual business volumes not exceeding 20 million Egyptian pounds. This move aims to enhance tax inclusion and digital transformation. Kojouk stressed that simplifying procedures, improving predictability, and collaborating with the private sector are fundamental pillars of Egypt's financial and tax reforms.
The new economic program is part of Egypt's broader efforts to enhance its economic indicators and maintain fiscal discipline. The government aims to build on the progress made under the current IMF program, focusing on sustainable growth, reducing debt, and improving the business environment. Key initiatives include enhancing tax compliance, resolving disputes, and promoting investment.
Key points
- Egypt aims to reduce its government debt to 78% of GDP.
- The country has settled nearly 200,000 tax disputes.
- A new economic program is set to be launched soon, following the completion of the current IMF program.
