Egypt's latest tax relief measures are drawing praise from economic experts who say the sweeping changes mark a turning point for investor confidence and signal a deeper effort to rebuild trust between the state and the private sector. The tax facilitation package—introduced under Laws No. 5, 6, and 7 of 2025—includes expanded incentives for businesses, dispute resolution mechanisms, and tax exemptions aimed at easing burdens on small and medium-sized enterprises (SMEs). A second wave of facilitations is expected to eliminate late payment interest on additional taxes for compliant taxpayers, following the initial success of the first package in spurring business activity. These reforms are "a drastic shift in (Egypt's) in tax policy and in the relationship between the Tax Authority and the business community." said Abdelrasowl Abdelhady, a taxation professor and board member of the Egyptian Tax Association. "We are at a key turning point in the history of Egypt's tax system." "It is evident that the government is serious about removing the challenges faced by the business community and rebuilding trust through fair and transparent tax practices." The reforms aim to formalise the informal economy, attract private investment, and create a more transparent, streamlined system. Over 90 per cent of the European Bank for Reconstruction and Development's (EBRD) operations in Egypt are directed toward the private sector, highlighting the growing role of SMEs in Egypt's economy. "It is a critical message for both local and foreign investors, especially as these measures address many challenges faced by taxpayers in recent years." said Abd El Moneim El Sayed, Director of the Cairo Centre for Economic and Strategic Studies. These new tax laws "also contribute to settling long-standing tax disputes, helping to integrate the informal economy by encouraging voluntary compliance through a range of exemptions and benefits, including immunity from accountability for prior periods." The legislation includes amnesty from tax audits for certain past periods, dispute settlements outside courts, and targeted benefits for businesses with annual revenues under 20 million Egyptian pounds. It also supports Egypt's longer-term ambitions to widen the tax base and boost exports. "The new tax facilitation measures represent a bright spot, inspiring optimism within the tax community and aiming to resolve long-standing issues." said Khaled Shafey, head of the Capital Centre for Economic Studies and Research. They are creating "a sense of reassurance among small and medium-sized business owners, and we anticipate a strong influx of these enterprises into the formal economy, driven by fair tax assessments based on turnover, with no additional burdens." The package also aims to support businesses struggling with rising costs and tight margins. The measures contribute to "easing the financial burdens on taxpayers." said economic analyst Ashraf Ghorab. They also encourage "expansion of existing ventures, and reassures investors that the state is committed to removing barriers." Ali El-Idrissi, a professor of economics at Culture and Science City, noted that freelancers and startups stand to gain from exemptions like the removal of profit tax and stamp duty, giving them a lifeline in a difficult operating environment. "The launch of the tax facilitations first package is an important step to support the Egyptian economy and to strengthen the small business and startup sectors, in addition to supporting those working in the informal economy, such as freelancers." Other experts described the tax relief as a long-awaited boost for SMEs with annual revenues under 20 million pounds. These incentives "are designed to foster the growth of these economic entities, ultimately contributing to the strengthening of the productive and export base." said Hassan Ouda of the German University in Cairo. Still, experts warn that effective implementation will determine whether the reforms deliver on their promise. "The real challenge, however, lies in their practical implementation to build bridges of trust, partnership, and support for the business community." said Mostafa Badra, Professor of Finance and Investment The Ministry of Finance has pledged closer oversight of tax office operations to ensure consistency and fairness in applying the reforms. It is "a commendable beginning, deserving of endorsement and support." said Mohamed Ghamry El-Shawadfy, former dean of commerce at Zagazig University. The changes come as Egypt grapples with inflationary pressures and seeks to shore up investor sentiment. Finance Minister Ahmed Kouchouk has said the reforms are part of a broader effort to strengthen the economy and promote a fairer, more inclusive tax system. Attribution: Amwal Al Ghad English
