Egypt's tax revenue reached LE120 billion for the period from 1 January to 24 February of this year, representing a 16 percent increase on the same period last year when it amounted to LE102 billion, head of Egypt's tax authority Mamdouh Sayed Omar announced Sunday.
According to Omar, the increase showed that recent reforms of Egypt's tax collection system were successful – especially a new electronic tax payment system, implemented at the end of last year – and that the practice of tax evasion had notably decreased.
Omar also called on taxpayers to file their taxes before the deadline announced by the tax authority – 31 March for individuals and 30 April for companies – so as to avoid paying legal penalties.
In a televised interview Sunday night, Egyptian President Mohamed Morsi announced that monthly incomes of LE12,000 or less would be exempted from income taxes. Previously, the ceiling had been LE9000.
Last December, Morsi announced a raft of changes in Egypt's tax system that included sales-tax increases on several consumer goods and the modification of income tax brackets. The decision, however, was quickly postponed in order to leave time to conduct a 'social dialogue' initiative on the new measures before their implementation.
Tax revenue currently accounts for about 70 percent of Egypt's overall state revenue.
Egypt collected the equivalent of LE170 billion in taxes for the fiscal year 2011/2012.
The government had set a goal of collecting LE260 billion in taxes for the current fiscal year.