Minister of Finance Mohamed Maait. (Photo: Al-Ahram)
Afterward, the draft legislation will be submitted to the Cabinet for approval.
Maait's remarks came during a meeting with heads of the General Federation of Commerce Chambers.
This marks the second revision to the income tax law this year, following parliamentary approval of amendments in October increasing the annual income tax exemption from EGP 24,000 to EGP 30,000.
The government is aiming to align Egypt’s tax system with its commitments to fulfilling the requirements of the Extended Fund Facility (EFF) loan programme, approved by the International Monetary Fund (IMF) in December 2022.
The IMF programme necessitates the implementation of various measures, including the introduction of new tax policies and the rationalization of existing exemptions, such as those related to value-added tax (VAT).
The parliament previously approved a government-proposed amendment to the 2016 VAT law, levying a tax of EGP 0.50 on locally sold tobacco products.
Additionally, the cabinet abolished tax exemptions for state entities and affiliated enterprises in June, aiming to establish parity between the public and private sectors.
Egypt’s total government revenue rose 15.5 percent in FY2022/23, driven by a 27.2 percent surge in tax revenue.
Maait highlighted that customs taxes contributed EGP 54.6 billion during the same period, a 27.2 percent annual increase. Moreover, property taxes experienced a notable upswing of 34 percent, reaching EGP 6.2 billion.