The conference highlighted the immense challenges the
Egyptian economy faced in recent years due to successive global crises, which
impacted growth and economic stability. In response, Egypt implemented
structural fiscal reforms, significantly improving general budget indicators,
supporting growth, and enhancing the economy's resilience.
Ahmed Kouchouk affirmed that most economic and financial
indicators are very encouraging, fostering greater ambition for Egypt this
year. The economic growth rate more than doubled during the first nine months
of the last fiscal year, rising from 2.4% to 4.2%, and reaching 4.8% between
January and March 2025.
The Minister of Finance noted that industrial growth now
exceeds 15% after a two-year slowdown, while tourism growth is 17%. The communications
and information technology sector continues its high growth trajectory. Non-petroleum
exports surged by 33%, and average inflation dropped to below 15%.
Last fiscal year saw the highest primary surplus at 3.5% of
GDP, alongside increased spending on health, education, and other vital
sectors. Kojak highlighted the private sector's encouraging momentum, now
accounting for 65% of total investments and achieving an annual growth rate of 73%.
Kouchouk announced plans to launch the second package of "tax
facilities" during the current fiscal year and to release the tax policy
document before the end of 2025. These initiatives aim to ensure tax stability,
certainty, and clarity. He pointed out that tax revenue growth reached 35% last
fiscal year without increasing burdens or prices. The growth rate of tax
revenue relative to GDP also approached 1% without additional burdens,
underscoring the success of fostering trust and partnership with the business
community.
He explained that half a million taxpayers voluntarily
submitted new and amended declarations, resulting in approximately EGP 60
billion in additional taxes. Around 170,000 requests to close old tax files
were received, with EGP 7.5 billion in value-added tax refunded to taxpayers.
Furthermore, 70,000 taxpayers voluntarily joined the simplified tax system to
benefit from its incentives. The goal is to approve diverse incentives for the
first 100,000 small project taxpayers who join this simplified system.
He confirmed that the current fiscal year will introduce new
packages of facilities within the customs and real estate tax systems.
Addressing public concern about debt, Kouchouk stated,
"We have started reducing the debt-to-GDP ratio and aim to improve all
indicators in the coming period." He assured that Egypt continues to
reduce the volume of external debt for budget agencies by $1 billion to $2
billion annually.
Finally, he noted efforts to expedite the payment of outstanding dues to pharmaceutical companies to stimulate growth in this vital sector.