Egyptian Minister of Finance Mohamed Maait.
Egypt is set to launch a unified platform for electronic tax collection in September, which is designed to collect and document the taxes of all entities online, Minister of Finance Mohamed Maait announced on Monday.
The platform is anticipated to cover all tax types, including income taxes, freelance taxes, deductions and collection returns, value added taxes (VAT), and stamp taxes, with all transactions set to be paid electronically using non-cash payment methods, according to the minister.
“The state is stepping up its efforts to merge the informal and formal economies for the sake of achieving tax justice and leveling the playing field among taxpayers in the local market, as well as increasing the state’s public treasury revenues,” said Maait.
He also highlighted the importance of the projects the government has adopted to digitise tax collection, as they improve tax collection efficiency, curb tax evasion, and track commercial transactions between companies and consumers.
The online platform contributes to enhancing Egypt’s tax system governance by linking it with 74 government entities across the country electronically, according to Maait.
According to the current FY2021/2022 plan, Egypt is aiming to increase tax revenues by 18.3 percent. That includes EGP 297.1 billion in income tax revenues collected from non-sovereign bodies, excluding the CBE, Suez Canal, and taxes on T-bills and T-bonds proceeds.
It also includes a targeted EGP 449.6 billion of VAT, a growth of 17.2 percent compared to FY2020/21.
As for the property tax, it is projected to grow by 0.08 percent of GDP in FY2021/22 to record EGP 5.6 billion.
In terms of the customs tax, the government plans to raise it by 12.3 percent to reach EGP 42.4 billion as well.
It is also planning to collect EGP 380.6 billion in FY2021/22 from non-tax sources.