Egyptian Member of Parliament Mohamed Salim has submitted a request for information to the Prime Minister and Minister of Finance regarding the need to achieve fairness between property tax payers who are committed to paying their taxes on time and those who are late. This comes as the property tax system has recently introduced a package of facilitations and incentives aimed at encouraging taxpayers to regularize their situations, settle arrears, and enhance voluntary compliance.
The property tax system has seen significant engagement, with over two million properties registered and 1.5 million electronic accounts created. Additionally, nearly 1.2 million tax returns were received within 100 days, with the deadline for submitting returns extended to the end of December 2026 to take advantage of the facilitations and incentives. However, MP Salim noted that these measures raise questions about achieving balance between taxpayers who have been consistently paying their taxes on time and those who have accumulated arrears or delayed submitting their returns.
MP Salim emphasized that while the recent measures are important for expanding the base of compliance, they do not address the issue of fairness for taxpayers who have been diligently paying their taxes for years. He called for a clear mechanism to reward taxpayers who regularly pay their property taxes, suggesting the possibility of granting them a discount or tax benefit linked to the number of years of compliance.
The MP stressed that achieving fairness in the tax system is not limited to regularizing the situations of late taxpayers but also involves creating sustainable incentives for committed taxpayers. This, he argued, would prevent the perception that delaying payment may lead to future concessions that are not available to those who fulfill their obligations on time.
MP Salim requested a public evaluation of the actual results of the current facilitations and incentives. He suggested that the assessment should go beyond indicators such as the number of submitted returns or established electronic accounts and include the volume of settled arrears, the number of new taxpayers who have joined the system, and the impact of these measures on tax revenue.
The MP also highlighted the importance of measuring the success of the expansion of digitalization in reducing disputes and arbitrary estimates and its contribution to achieving sustainable tax compliance and expanding the base of taxpayers. He called for a clear and fair framework for tax incentives that balances the regularization of late taxpayers' situations with rewarding regular taxpayers.
Ultimately, MP Salim emphasized the need for a balanced approach that promotes confidence in the tax system and supports the state's direction towards expanding the tax base based on voluntary compliance and digital transformation. This approach aims to encourage taxpayers to fulfill their obligations willingly and on time.
Key points
- The proposal aims to achieve fairness between taxpayers who pay property taxes on time and those who are late.
- The property tax system has seen significant engagement, with over two million properties registered and 1.5 million electronic accounts created.
- The MP called for a clear mechanism to reward taxpayers who regularly pay their property taxes.
