Ahmed Kouchouk, Minister of Finance, announced that during the first quarter of the next fiscal year, the Ministry will introduce a strategy aimed at improving government debt indicators and enhancing the tax policy document. "We are working to diversify funding sources and attract local investors to reduce external borrowing and costs. We are also considering issuing green and Islamic bonds in the local market for the first time," he stated. His comments came during a symposium organized by the National Press Authority, led by Abdel Sadek El-Shorbagy, to discuss future cooperation between the Authority and the Ministry. The Ministry's plans were reviewed in alignment with the government's broader objective to improve the quality of life for Egyptians. Kouchouk highlighted four main areas of focus for the Ministry. He discussed the strengthening of the partnership between the Egyptian Tax Authority and the business community, built on trust, certainty, and support, aimed at simplifying tax processes, improving services, and ensuring fairness in rights and obligations. The first package of tax facilities, fully implemented this fiscal year, has been well-received by taxpayers. The Ministry also launched the pilot operation of a central electronic clearing system to facilitate liquidity for investors by addressing government dues and debts. Kouchouk emphasized that old tax files prior to 2020 will be closed in a fair, simplified, and equitable manner, with the Egyptian Tax Authority working to correct certain administrative decisions to build taxpayer trust. The Ministry is also relying on neutral institutions to evaluate and regularly review the progress of tax reforms, ensuring transparency through extensive media communication with all tax community segments. For the first time, a new, simplified system will be implemented for start-ups, SMEs, entrepreneurial activities, and professionals with a business volume of up to EGP 15 million. This system offers new incentives, exemptions, and facilitations across all tax categories, including income, value-added tax, stamp duties, and state resources development fees. Notably, businesses joining the system will be exempt from capital gains taxes, dividends, stamp duty, registration and documentation fees, and will face no advance payments or discounts. Additionally, Kouchouk announced a cap on late fees, ensuring that fees will not exceed the tax principal amount to prevent undue burdens on taxpayers due to delays in audits or disputes. The Ministry will also encourage unregistered taxpayers to regularize their status before audits, providing them with an opportunity to submit or amend tax returns from 2020 to 2023 without penalties. In the coming weeks, new packages of facilities will be introduced to tackle challenges in customs and real estate taxes. Kouchouk also noted that the Ministry is working on more comprehensive, open, and impactful financial policies that support economic activity and the productive sectors, all while maintaining fiscal discipline. The Ministry is also focused on creating sufficient financial room in the budget to increase spending on human development and social protection, ultimately improving citizens' living standards. Public spending on health and education has increased by 26% and 25%, respectively, from July to October, with further increases planned for the new budget, particularly for health, education, and social protection. Abdel Sadek El-Shorbagy, Chairperson of the National Press Authority, welcomed Kouchouk and praised the Ministry's efforts in addressing challenges and stimulating economic growth through effective financial policies that align with the political leadership's directives. He commended the Ministry's initiatives to improve economic indicators and ensure the sustainability of balanced financial policies. El-Shorbagy also highlighted the critical role of Egypt's national press in supporting the nation's issues, raising awareness, and combating misinformation. He emphasized the strong, respectful relationship between the Ministry of Finance and the Authority, expressing hope for continued constructive cooperation in the future.
