• | 1:00 pm

Egypt plans to boost social protection package

The Finance Minister talks about structural reform of tax policy strategy

Egypt plans to boost social protection package
[Source photo: Anvita Gupta/Fast Company Middle East]

The Egyptian government plans to alleviate financial pressures for citizens and businesses while attracting vital private sector investment with a new social protection package.

Egypt’s Finance Minister Mohamed Maait unveiled an upcoming social protection package featuring salary and pension adjustments, coupled with a hike in the tax exemption threshold.

Addressing the annual conference of the Egyptian Tax Society (ETS), Maait underscored the government’s commitment to open dialogue regarding the proposed state budget for 2024/2025 and Egypt’s tax policy strategy for 2024-2030, both documents to be submitted for public discussion in February.

He hailed the success of tax automation, citing a 26.9% revenue increase in 2022/2023 achieved without additional burdens on investors. Specific sectors benefited significantly, with real estate transaction revenues surging 43.6% and the gold sector witnessing a 67% jump.

The ministry proposed extending the state’s responsibility for bearing the real estate tax burden on key sectors like industrial projects and poultry farming until 2026. 

Maait also announced an amended income tax law is on the horizon, set for public debate next month and subsequent cabinet approval.

The Ministry of Finance introduced a settlement system to streamline investor receivables and address tax-related issues for government entities. 

This includes a 45-day limit for value-added tax refunds and investment incentives, ranging from 33% to 55% of profits tax, offered for green hydrogen projects and strategic industries.

Mechanizing unlisted stock market shares has significantly improved payments in both Egyptian and foreign currencies. The minister emphasized the efficiency of mechanized tax systems in expediting annual tax examinations. He spoke on a newly enacted law that settles tax files for entities with an annual turnover below EGP 10m, utilizing a simplified fixed tax system with issued executive regulations.

The electronic invoice system boasts 500,000 registrants with a high commitment rate, resulting in nearly one billion electronic invoices issued. The e-commerce activity system has garnered around 40,000 registrants since its initiation in June 2021. 

Now accepting applications for Fast Company Middle East’s Best Workplaces For Women 2023. Click here to register.

More Top Stories: