According to the Egyptian Presidency, the package — titled Supporting and Incentivizing Tax Compliance — builds on the success of the first phase, which focused on turning a new leaf with taxpayers and strengthening trust between the Tax Authority and the business community.
The second phase aims to encourage compliant taxpayers through streamlined procedures, expanded digital services, and a wider taxpayer base, while maintaining measures that ensure sustained voluntary compliance.
According to the finance minister, the new set of measures targets all segments of the compliant taxpayer community, offering incentives and facilitations that enhance confidence, support business growth, and improve competitiveness.
Kouchouk reviewed ongoing efforts to advance tax reform under the “Trust Partnership” framework with the business sector, noting that the first facilitation initiative had already proven successful.
He said 400,000 old tax files were voluntarily closed, and approximately 650,000 taxpayers submitted new or amended declarations. He added that tax revenues increased by EGP 78 billion, while new business activities worth EGP 1 trillion were recorded.
The second facilitation package will include improvements to VAT refund efficiency and the launch of premium taxpayer service centres. It would also include a set of incentives and privileges for compliant taxpayers and other reforms that respond to the needs of businesses, accountants, and tax experts.
For his part, President El-Sisi directed the government to proceed with launching the second batch of tax facilitations and continue developing the tax system based on trust, certainty, and transparency.
He also emphasized upgrading all tax services, expanding facilitations, and fostering investor confidence.
The finance minister also reviewed preparations for implementing the new property tax facilitations.
The measures aim to ease tax burdens by simplifying procedures, expanding digitalization, increasing the exemption threshold for private residents, extending the valuation cycle to seven years, and allowing for tax waivers or suspension in case of crisis.
The plan also includes streamlining the appeals process, enabling electronic payment, and capping late-payment penalties so they do not exceed the original tax due.
Moreover, the meeting agenda included updates on financial and economic performance. Kouchouk stated that Egypt's economy is on an upward trajectory. Private investment, he noted, grew by 73 percent in the last fiscal year, supported by balanced indicators that are helping restore investor confidence.
Furthermore, Kouchouk emphasized the government’s commitment to maintaining a strong primary surplus to boost social protection, human development, manufacturing, and export growth.
He also presented the government’s plan to upgrade the customs system in cooperation with the Ministry of Investment and Foreign Trade. The reform plan, he explained, responds to business community demands and aims to strengthen competitiveness by reducing clearance times, expanding digital and pre-clearance procedures, introducing unified inspection systems, and enhancing oversight to curb smuggling.
Customs staff, Kouchouk noted, will also receive advanced technical training.
Additionally, the finance minister reviewed the efforts to reduce public debt-to-GDP ratios, which he described as a national priority. He cited major investment agreements, such as the Ras El-Hekma and Alam Al-Roum projects, as confirming investors' confidence in Egypt's economy.
At the end of the meeting, El-Sisi instructed the government to build on improving economic indicators, boost private investment, and prioritize human capital development through innovative programmes and training.
He also stressed the need to accelerate full digital integration within the Ministry of Finance — including customs and tax operations — while ensuring strict governance of all procedures.
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