Egypt's economy expanded by 4.8 per cent in the third quarter of FY2024/2025, up from 4.2 per cent in the first nine months and 2.4 per cent at the start of the fiscal year, Finance Minister Ahmed Kouchouk told the Egyptian-Canadian Business Council Conference on Monday. He highlighted strong economic growth in Egypt, with industrial growth up over 15 per cent, tourism rising 17 per cent, and the ICT sector showing strong momentum. Non-oil exports increased by 33 per cent and inflation dropped below 15 per cent. Kouchouk said that the government has achieved a record primary surplus of 3.5 per cent of GDP, alongside higher spending on health, education, and essential sectors. The private sector, now accounting for 65 per cent of total investments, grew at 73 per cent annually. He also revealed plans to introduce a second set of tax relief measures this fiscal year. A detailed tax policy document shall be revealed by the end of 2025 for stable, predictable, and transparent tax administration, he added. The minister revealed that the growth rate of tax revenues during the last fiscal year reached 35 per cent, achieved without any increase in tax rates, the minister told the gathering. Additionally, the growth in the tax revenue-to-GDP ratio approached 1 per cent—without increasing burdens—reflecting, he said, the success of Egypt's trust- and partnership-based approach with the business community. Kouchouk noted that half a million taxpayers voluntarily submitted new and amended tax returns, resulting in approximately EGP 60 billion in additional tax payments. The ministry received nearly 170,000 requests to close old tax files, and refunded EGP 7.5 billion in value-added tax (VAT) to taxpayers. He added that 70,000 taxpayers also voluntarily joined the simplified tax system to benefit from its incentives. The ministry aims to implement varied incentives for the first 100,000 small project taxpayers to have joined the simplified tax regime. The minister confirmed that the current fiscal year will witness new packages of reforms and facilitation measures in both the customs system and the real estate taxation system. Addressing concerns over Egypt's debt levels, the minister acknowledged public anxiety and assured that the government has already begun reducing the debt-to-GDP ratio, targeting overall improvement in all economic indicators over the coming period. He added that the government remains committed to reducing external debt service obligations for budget entities by $1–2 billion annually. Kouchouk stated that the government is working on achieving a breakthrough in settling dues owed to pharmaceutical companies, to support the continued growth of this vital sector, the statement added. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
