The announcement was made during a joint open forum with Minister of Investment and Foreign Trade Hassan ElKhatib, held as part of the Engineering Export Council’s conference on the future of industrial and engineering exports.
The first package was launched in October last year. Tax revenues increased by EGP 500 billion during the first 11 months of FY2024/2025, which ended on June 30.
This increase occurred without imposing any new financial burdens and was attributed to tax incentives and simplification measures, according to previous statements by Kouchouk.
Kouchouk said the new measures aim to deepen trust and certainty in the tax system, especially among current taxpayers. “We’re implementing key reforms to reduce tax burdens and obligations, while improving service quality to support taxpayers,” he noted.
Among the upcoming reforms is the launch of a centralized electronic platform to reconcile government dues and debts for investors, designed to enhance liquidity. The government also plans to overhaul the value-added tax (VAT) refund system to streamline procedures and accelerate payouts. Kouchouk highlighted that EGP 7 billion in VAT refunds were issued to partners last year, triple the annual average.
The minister added that Egypt will leverage the digital integration between its tax and customs systems to offer further incentives to investors. A simplified guide for tax procedures related to exported services is also in development, aimed at enhancing the competitiveness of service exports.
The government is targeting small and new exporters with tailored support to help them grow and compete regionally and globally. Kouchouk said the simplified tax system will be fully activated to encourage small taxpayers and entrepreneurs across various sectors.
Tax revenues have grown by 35 percent without imposing additional burdens, thanks to the first round of incentives. Kouchouk confirmed that independent institutions have been contracted to evaluate the reform program, which he described as “a path of incentivized tax reform we’re proud to evolve together”.
For the first time, Egypt has fully funded a robust export burden rebate program from the state budget, allocating EGP 45 billion to stimulate exports. Half of the outstanding dues to exporters are being paid in cash, with the remainder settled against government debts in the finance, insurance, and energy sectors.
Minister Kouchouk also announced plans to revise the solidarity contribution to make it more equitable and responsive to business needs. The state budget will sustainably cover the difference in contributions for comprehensive health insurance on behalf of the business community.
Investment and foreign trade minister ElKhatib emphasized the importance of private sector partnership and creating an attractive investment climate. He said the government is working to support the sector through monetary policies managed by the Central Bank and structural financial reforms.
ElKhatib highlighted the ongoing coordination between ministries and relevant agencies, which has helped reduce customs clearance times and facilitate the entry of products. He stressed the need to boost Egypt’s trade competitiveness to rank among the world’s top 50 trading nations.
He also highlighted plans to expand trade with African and European markets, as well as support automotive manufacturers aiming to export from Egypt. “We’re working to localize the auto industry and help major companies increase production,” ElKhatib said.
Sherif El-Sayyad, Head of the Engineering Export Council, praised the synergy between the finance and investment ministries, saying it has paved the way for an unprecedented export boom. Engineering exports have grown at an average annual rate of 26 percent over the past five years, he added, crediting government support for enhancing global competitiveness.
Supporting exports in five priority sectors comes as a key target under Egypt’s new economic narrative. Egypt’s Narrative for Economic Development prioritizes the tradable sectors of manufacturing, tourism, agriculture, energy, and information and communication technology (ICT) through 2030.
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