Arab FinanceExperts and officials emphasized that President Abdel Fattah El -Sisi's directive to the government to replace the financial fees that various bodies and bodies receive with an additional, unified tax of net profit will contribute to creating a more competitive investment climate, especially with simplifying procedures, mitigating financial burdens and heading towards more tax reforms.
For his part, Dr. Al -Sayed Saqr, Vice President Egyptian Tax AuthorityIn exclusive statements to Arab Finance, the presidential guidance to replace government fees that take place from the investor with UniformThe unification of the party that will take place these fees that the investor pays to government agencies at the beginning of the establishment of his project is to facilitate and facilitate investors, pointing out that the investor who will establish a new project will not pay these fees to government agencies at the beginning of the project, and these fees will be calculated to pay as a percentage of profits in the form of a tax after the operation of his project and achieve profits.
Saqr added that the presidential guidance with the issuance of this new tax, which will be a substitute for government fees, will be presented to the competent authorities such as the People's and Senate, as well as the Council of Ministers to set specific mechanisms for its implementation, and approve it to be applied after that.
The unified tax gives positive messages to investors
While Shaima Alba, a member of the Board of Directors of the Chamber of Engineering Industries of the Federation of Industries, and Chairman of the Committee to include the unofficial sector in the room, said that the move to issue a new unified tax as an alternative to the multiple fees of various government agencies is a good step, and we often demanded it in the Federation of Industries, pointing out that this step will make financial and administrative stability for companies, and will limit and release any opportunity for corruption. It will also lead to more tax justice, and will encourage investment in Egypt, whether local or foreign.
Alibba added that the unified tax will send positive messages to those wishing to invest in Egypt, and emphasize the stability of the Egyptian economy, especially with the new government measures directed towards tax reform, which establishes a good investment environment for all investors, whether foreigners or local.
And Alibba called for taking more action related to digital transformation and digitization to deal with the various platforms of the Tax or Customs Authority, pointing out that the recent tax reforms will encourage the joining of workers in the informal sector of the tax system, and the state’s official sector, which contributes to increasing the tax revenues of the state, and also achieves the interest of the investor in terms of administrative and economic stability for its institution or company To be within the economic system of the state.
Collecting government fees on one side will be better for the investor
For his part, Adel Bakri, Secretary -General of the Egyptian Tax Experts, said that the idea of ​​uniting government fees in one side is responsible for collecting these fees in order to facilitate investors, which is a good idea but it needs a lot of clarification and community dialogue about it between the business community and the government, stressing that there is a big difference between the fees, and between the tax as the fees are in exchange for a service provided by the state while the tax is part of the net profit The term unified tax is inaccurate and the most accurate is a unified drawing.
Bakri explained that the philosophy of this offering is to facilitate investors, and that it is not a new tax burden, especially that the state is currently heading towards encouraging investment, and that any new investor considers when studying any project for tax burdens, and the percentage of profits that will be achieved from this project, and that in the event that the intended here is the unification of the party that will take place government fees for the service provided, this is a good thing while if it is a new tax that occurs from the net profit This will be a tax burden and something that is not good and unacceptable for the current investor or who is willing to invest in Egypt, pointing out that the matter needs many discussions and community dialogue to clarify the idea by the government for the business community in Egypt.
According to Rasha Abdel -Al, head of the Tax Authority, the tax revenue during the year 2023-2024 amounted to about 1.483 trillion pounds during the period from July 2023 to June 2024, compared to 1.139 trillion pounds for the same period with a growth rate of 30%, and an increase of 343 billion pounds, with an implementation rate of 106% of the link of 1.401 trillion pounds, an increase of 81 billion EGP.
She pointed out that the growth rates achieved by the Egyptian Tax Authority amounted to 30%, as the income tax growth rates reached 36%, and for value -added taxes reached 23%.
She explained that one of the most important items affecting the growth of the income tax is the tax on treasury bills and bonds, as it achieved 46% and commercial activities 71%, and non -commercial professions achieved a major boom during the current year with a growth rate of 52%, the stamp tax 33% and money companies 36% and taxes on salaries 33%.
According to the International Monetary Fund, the government has set 19 out of 58 exemptions that may be canceled to increase revenues without raising the tax rate.
According to the International Monetary Fund, Egypt can achieve additional revenues equivalent to 1% of GDP within 12 months by repairing value -added tax.
The fund indicates that these amendments must be presented to Parliament, however, it is not yet clear whether the government will request the postponement of the value -added tax reform, due to its potential impact on the costs of living.
The proceeds of tax revenues in Egypt
The monthly report data issued to the Ministry of Finance showed last November that tax revenues feed about 87.9% of the total revenues in Egypt's general budget during the first quarter of the fiscal year 2024-2025.
Tax revenues in the public budget increased during the first quarter of the current fiscal year by 45% to 413.28 billion pounds, compared to about 285 billion pounds in the same period of the year to a former.
According to the report, the total revenue in the general budget of Egypt increased by 40.2% during the first 3 months of the fiscal year 2024-2025 (July to September), recording about 470.1 billion pounds compared to about 335.1 billion pounds in the same comparative period last year.
The noticeable rise in tax revenues came in light of the recovery of economic activity and the solution of the foreign exchange crisis in addition to the contribution of the mechanization of tax systems to the development of tax administration, the increase in the outcome and the expansion of the tax base, according to the ministry's report.
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