Egypt's economy has started to show signs of improvement, with financial performance indicators for the first 8 months of FY 2025 described as "very good," according to Finance Minister Ahmed Kouchouk. Speaking at the annual EFG Hermes Foundation meetings in Dubai, Kouchouk shared details of ongoing efforts to enhance economic stability and foster private sector growth. Kouchouk explained that the Egyptian government is working to restructure financial policies to have a more significant impact on sustaining private sector expansion and ensuring long-term economic stability. He highlighted that the new budget for the fiscal year 2025/2026 is designed to stimulate economic activity by financing various initiatives that focus on boosting production and exports. This approach aligns with the government's broader goal of achieving comprehensive and sustainable economic growth. The Minister also discussed the ongoing restructuring of Egypt's tax system, emphasising a new approach based on building trust and partnership with the business community. He noted that expanding the tax base through voluntary compliance is a key objective, as it would create more financial space to support taxpayers. Kouchouk further highlighted the government's efforts to reduce tax burdens, introducing targeted incentive packages for individuals and businesses. He emphasised that the government is supporting startups, small businesses, and professionals with a simplified and integrated tax system. Additionally, efforts to resolve tax disputes are being made easier, with a cap placed on late fees and additional taxes, not exceeding the original tax due. Moreover, s central settlement mechanism for investors has been established, alongside improvements in VAT refund processes. Kouchouk also reaffirmed that Egypt is pursuing an integrated strategy to reduce debt levels and burdens, with the goal of increasing spending on human development and social protection for the country's most vulnerable groups. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
