Competitive Neutrality Law boosts tax revenues, private sector trust: Finance Minister

Ahram Online , Sunday 5 Oct 2025

Egypt’s Finance Minister Ahmed Kouchouk said on Thursday that the implementation of the Competitive Neutrality Law has bolstered fair competition and strengthened the government’s pledge to build a private sector–driven economy.

File Photo: Minister of Finance, Ahmed Kouchouk. Photo courtesy of Ministry of Finance.

Speaking at a press conference following the cabinet’s weekly meeting, Kouchouk said the law has fostered “a culture of equal opportunity” across economic activities, while removing tax distortions created by the preferential treatment of state-owned entities.

“The law has laid the foundation for a trust-based partnership with the private sector,” he said, adding that it supports Egypt’s broader goals of inclusive growth and job creation for youth.

Competitive neutrality is the principle that government-owned or controlled entities should not enjoy advantages over private companies in the marketplace.

Its implementation ensures that all businesses, whether publicly or privately owned, operate on a level playing field, with no unfair financial, regulatory, or operational advantages provided to government-owned entities.

Rising revenues

Kouchouk revealed that eliminating tax exemptions for state-owned firms generated EGP 67.4 billion ($1.4 billion) in preliminary tax revenues in 2024.

Sovereign-affiliated companies accounted for EGP 16.4 billion, while 134 government entities were liable for EGP 9 billion.

Newly registered entities with the Tax Authority have added another EGP 4.1 billion.

He also highlighted specific contributions from state-linked institutions, including

EGP 23.4 billion in value-added tax (VAT) from services offered by government-affiliated clubs
EGP 8 billion in taxes from the Administrative Capital Company
EGP 1.9 billion in VAT from military production firms
EGP 3.5 billion in income taxes from sovereign-affiliated companies
EGP 1 billion in development fees from two sovereign-owned cement companies

Kouchouk said the additional revenues are being directed to priority areas in the national budget, particularly social protection and human development programmes.

IMF meetings ahead

The minister also noted that Egypt will showcase these reforms during the annual meetings of the World Bank and International Monetary Fund (IMF), scheduled for 13-19 October.

Cairo aims to present a “new economic narrative” for the next five years, while pushing discussions with the IMF on completing the fifth and pending reviews of its $3 billion Extended Fund Facility (EFF) loan, alongside the first review of a $1.3 billion Resilience and Sustainability Facility (RSF) arrangement.