The Egyptian Tax Authority (ETA) expects the IRS' estimated proceeds of tax reconciliation in 2015 to be about EGP 48m in 27 cases of tax evasion that have been solved, according to ETA's statement released on Monday. It also said it collected some EGP 270bn of tax proceeds during the 2014-2015 fiscal year (FY). The statement noted that sales tax proceeds amounted to EGP 1.5bn while income taxes amounted to EGP 165bn. The report stated that ETA has finalised the added value draft law in 2015 and expected an additional EGP 31bn increase when it is imposed. The government has been accelerating its steps to implement broad economic reforms aimed to lift the State's resources, especially through taxes. In the upcoming few years, the government will keep 22.5% tax on income in addition to pursuing more reconciliation with tax evaders. Egypt has cancelled the 5% special tax, which was applied in 2014 on incomes exceeding EGP 1m per year, as a step to unify the tax price. According to an official at the Ministry of Finance, the value-added law underwent a societal consultation and dialogue with all stakeholders and interested parties, noting it will be presented to the next parliament for approval since it aims to increase tax revenues. The parliament will hold its first session on 10 January, according to remarks of President Abdel Fattah Al-Sisi after he appoints the last 28 members. The parliament will review all legislation issued recently and approve others, including the value-added law. The official said the ministry aims for a broad general reform of the taxation system by expanding the tax community without compromising low-income citizens. He said this will bring more resources to the State, which can be used to support public spending and curb state deficit to reduce prices and help poor and limited-income citizens.
