Finance Minister denies reports of new taxes on economic activities

Finance Minister Mohamed Mait has assured Egypt’s business community that the government has no intention of imposing new taxes on economic activity.

Maait’s remarks were made during his participation in the Egyptian Taxation Association Conference titled “Investments and their impact on the global economy, and their impact on the future vision of the tax system.”

Maait said: In light of the uncertainties associated with war. “

He added that regular meetings with the business community department will be held over the next few years to announce the state’s tax policy for the next five years.

Mr Maait confirmed the finance ministry’s commitment to a tax system that will stimulate domestic and foreign investment. Run the economy in a sustainable way. To lay the foundation for inclusive and sustainable development, improve the lives of citizens, raise the level of services provided to citizens and expand social protection networks in a way that contributes to achieving high growth rates. reflected. The most caring group that describes continuing to reduce the burden of production activities. For industrial development and export promotion, with a focus on priority areas. To meet development and economic goals and provide employment opportunities, several legislative changes have been made over the past few years, authorizing more tax facilitation for industrial and productive communities.

He said he had no intention of imposing a new tax on economic activity and would not undermine the commercial and industrial income tax rate, noting that in implementing the presidential directive a bill is currently being prepared to end it all. . It is an old progressive tax file based on the principles of the Small and Medium Enterprise Promotion Act, which covers 60% of his old cases and has a different scenario for tax treatment of the remaining 40% of his cases.

He added that we don’t want to get involved in tax disputes with the business community, and we reach out to everyone who wants to settle with their tax files.

He pointed out that digital transformation will remain a fundamental pillar of the Egyptian national road. Comparable to the global system based on the greater role of artificial intelligence in making tax collection more efficient and easier for taxpayers by simplifying, standardizing and mechanizing procedures, especially as digital systems have contributed to increased tax revenues. Ensure a more developed tax system. Pointing out that the growth rate in the first half of the current financial world is approaching 20%, the integration of the “electronic invoice” system and the “electronic receipt” system will contribute to the integration of the informal economy and the realization of tax justice. In turn, it maximizes state revenues, creates fiscal space to support social development, and mitigates the severity of the wave. The impact of global inflation on the poorest citizens.

Maait also confirmed that there are 260,000 companies participating in the e-invoicing system, with the monthly average of e-invoicings sent reaching 35 million automated documents, and the number of I stressed that no transactions or refunds are allowed with. It cannot be taxed or imported/exported unless it is registered on an electronic invoice.

He explained that the legislative structure of the tax system has been developed. In a way that legally covers modernization, mechanization and procedural redesign and gives legislative authority, it takes into account the vision of the business community in each act before it is referred to the Council of Ministers and then to the House of Representatives. Select representatives by adopting a pre-community dialogue methodology. In order to achieve the national interest, the Uniform Tax Procedures Law calls for simplified, integrated, digitized, unified and mechanized tax procedures to standardize the procedures for linking and collecting income tax, stamp duty. Emphasizing that it has established a legal framework to codify, VAT will access the Egyptian Tax Authority’s electronic portal in a way that allows taxpayers to avail services electronically without having to go to an official office. and use their unified tax registration number. All types of eligible taxes and electronically using any non-cash payment method.

He said a new electronic system for preparing and managing workers’ salaries and qualifications applies to 87% of state agencies, with various laws regulating their work. Standardization of rules, standards and procedures for calculating monthly income and insurance taxes through the “payroll” system in a manner that supports fairness among employees, fair competition in expense reimbursement among businesses, and achievement of goals. and contribute to automation. Goals to strengthen the governance of the state’s financial system, lay a foundation for transparency, maximize financial inclusion efforts, and collect dues from the national treasury.

He achieved a sustainable primary surplus averaging around 2%, recording 5.5% growth in GDP in fiscal year 2023/2024, despite unprecedented global economic challenges, It has indicated that it aims to inject deficits and debts to reduce the fiscal deficit to a level of 5% over the medium term, with the goal of lowering the government debt ratio to less than 80% of GDP by the end of 2027. I am aiming for

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