Egypt tax exemption is about to expire: Finance ministry

Ahram Online, Monday 19 Mar 2012

Period of 25 per cent tax cut for payment of wage taxes close to ending

(Photo: File)

Only ten days remain for taxpayers to benefit from a 25 per cent tax cut, the ministry of finance said in a statement Monday.

The new law, issued earlier this year, gives incentives for taxpayers to get cuts if they pay all or part of their dues before 31 March.

The move comes as Egypt's government seeks to bolster its budget revenues and control deficit, which is expected to reach LE144 billion, 9.1 per cent of GDP.

The incentive scheme grants a 25 per cent cut if dues are paid before 31 March, 15 per cent if paid between 1 April and 30 June, and 10 per cent if paid between 1 July and 31 December.

Delayed wage taxes amount to 67.2 per cent of total revenues of the sector; which translates to LE3.42 billion, according to a report published Sunday in Al-Shorouk daily. Most of the delays in wage taxes are in public institutions such as the petroleum authority, ministries of justice, interior and foreign affairs.

The government plans to raise LE1.67 billion of this year's delayed wage taxes in the current financial year.  

Total tax revenues grew by 15.6 per cent during the 2010-2011 financial year to reach LE169.7 billion, versus LE146.6 billion for the previous year.

Ministry officials said the increase was due to "taxpayers' sense of national duty” along with new dispute resolution policies undertaken by Egypt's tax authority.

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