Last Update 19:55
Monday, 14 October 2019

Egypt's next reform will be a value-added tax: Sisi

Ahram Online , Monday 28 Sep 2015
Egyptian President Abdel-Fattah el-Sissi (Photo: Reuters)
Views: 3449
Views: 3449

Egypt will introduce a value-added tax, President Abdel-Fattah El-Sisi announced on Sunday in an editorial for the Wall Street Journal.

“As we look to the immediate horizon, the main reform on the agenda concerns the proposed amendments to the General Sales Tax,” wrote El-Sisi in a piece entitled “Re-engineering Egypt’s Economy.”

“The planned reform will move Egypt toward a value-added tax regime that will — alongside a simplified tax regime for small and medium-size enterprises — raise revenues and bolster investment incentives by boosting growth, creating jobs and improving firms’ cash flow,” said the president.

The tax is part of the government's fiscal reform programme, which includes cuts to expensive energy subsidies and the introduction of other new tax measures, and aims to containing the country’s budget deficit, which is estimated to have reached 10.8 percent of GDP in the last fiscal year.

The current year’s budget targets a deficit of 8.9 percent of GDP.

Egypt is aiming for a 5 percent growth rate for the current fiscal year, up from an estimated 4.2 percent in the year ending 30 June 2015.

Egypt expects LE422.4 billion ($54 billion) in tax revenues in the current fiscal year ending in July 2016, up from LE267 billion ($34 billion) collected in the previous fiscal year.

The finance ministry estimated earlier this year that VAT could raise tax revenues by around LE32 billion ($4.1 billion).

Earlier this month, the finance minister said that imposing VAT would have a one-time impact on prices of all goods excluding foods, raising them by between 0.5 and 2.5 percent.

El-Sisi is currently in New York, where he is attending the 70th session of the United Nations General Assembly.

Search Keywords:
Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.