The minister said the political leadership is firmly backing trust, partnership, and support for the private sector.
The success of the first facilitation package sets the stage for expanding incentives in the second package, he added.
Kouchouk noted that the Ministry of Finance is welcoming suggestions from the business community to improve and develop tax ease measures now and in the future.
The package aims to address the challenges businesses face and create a more competitive, growth-friendly investment environment.
He clarified that the positive response to the first package encourages further efforts to reduce tax burdens and enhance voluntary compliance through a variety of incentives.
The launch of the community dialogue comes during the ongoing visit of the International Monetary Fund (IMF) to Cairo for discussions on the fifth and sixth reviews of the $8 billion Extended Fund Facility (EFF) programme and the first review of the $1.3 billion Resilience and Sustainability Facility (RSF) loan.
According to Kouchouk, the second package includes new incentives, including a White List and Excellence Card programmes for compliant taxpayers to strengthen trust.
It also simplifies and speeds up tax processes, including inspections, refunds, and cost approvals.
Other measures include faster value-added tax (VAT) refunds to increase company liquidity, the application of lump-sum and proportional tax systems for the 2023 and 2024 tax years, and the option to offset tax credits and debits to ease payments.
The package also offers the right to refund credit balances to improve cash flow, a shift from capital gains tax to stamp duty to encourage stock market investment, tax benefits for companies listed on the stock exchange for three years, and an electronic system to streamline company liquidation and closure.
Additionally, it provides a mobile app for easier real estate tax notifications and payments, a 2.5 percent tax on real estate sales by individuals, even for multiple transactions, and deductions for foreign loan interest for private sector companies in strategic projects.
It also includes a VAT exemption on transit goods and services to promote transit trade.
Health and industrial incentives under the package include reducing VAT on medical devices from 14 percent to five percent, VAT exemption on dialysis machine parts and kidney filters, extending VAT suspension on medical and industrial equipment to four years, and exempting dividend distributions for Egyptian subsidiaries of resident holding companies.
Egypt’s tax revenues jumped by 36 percent in 2024, driven by strong taxpayer engagement following the government’s recent tax facilitation initiatives.
Between July and October of the current FY2025/2026, Egypt witnessed significant growth in tax revenues across various categories, reflecting robust economic activity and enhanced tax collection efforts.
Income taxes reached EGP 205.5 billion, a 45.6 percent increase compared to the previous period.
Corporate profit taxes accounted for EGP 120.7 billion, while taxes on salaries contributed EGP 55.9 billion.
VAT revenues rose to EGP 333.3 billion, up 27.6 percent, with goods contributing EGP 188.2 billion and services generating EGP 45.6 billion.
Property taxes also increased by 32.3 percent to EGP 157.3 billion, largely driven by interest from Treasury bills and bonds, which amounted to EGP 146.5 billion.
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