In a press statement, El Haddad explained that linking tax policy to modern technology is no longer an option, but rather a necessity if the company aims to build a smart public financial management based on actual data and reflecting the real economic reality. He pointed out that the current developments in electronic invoicing mechanisms, digital returns, and integration between the databases of various entities are clear evidence of the state's serious desire to reform the tax system from its roots using effective technological tools.
He added, "As specialists in the technology sector, close attention is being paid to the accelerated digital measures undertaken by the Ministry of Finance and the Tax Authority, which are beginning to bear fruit, whether in reducing tax evasion, reducing reliance on arbitrary assessments, or building trust between taxpayers and the tax administration." He emphasized that technology in this field is not just a means of facilitation, but a comprehensive reform tool. He pointed out that adopting the e-invoice and e-receipt system represents a radical shift in the way economic transactions are monitored and analyzed in the market and helps bring the informal economy into the legal fold, which in turn contributes to expanding the tax base without imposing new burdens on regular taxpayers.
The CEO of Edgecom emphasized that the digitalization of the tax system opens the door to effective partnerships between the government and the technology sector. Specialized companies are now required to support this trend by developing integrated digital tools and linking companies' financial and accounting systems to government portals in a secure and rapid manner. This represents promising investment opportunities for the IT sector in Egypt. He continued that the digitalization in tax policy has become part of a broader system that includes governance, combating corruption, enhancing transparency, and improving Egypt's ranking in ease of doing business indicators. This, we see, has a direct impact on attracting foreign investment, which prioritizes clarity of tax policies and ease of procedures.
El Haddad emphasized that the state is taking deliberate steps toward establishing an integrated digital tax system based on real-time data analysis, providing the state with an accurate view of market movements and economic activities. He explained that this approach not only contributes to improving collection efficiency but also helps in making more accurate and realistic financial decisions. He pointed out that one of the challenges that must be addressed in the coming period is the training and qualification of human resources, both within the Tax Authority and within companies, to efficiently handle new digital tools. He emphasized the need to continue investing in digital infrastructure and expand awareness of the benefits of the electronic system for all parties.
The Chairman of Edgecom added that digital tax reform must be built on cooperation with the business community, providing incentives to committed taxpayers, and adopting a gradual approach to implementation to ensure a natural and smooth response from companies and institutions. He emphasized the need to incorporate artificial intelligence into the tax system, which provides the state with a clearer vision for developing optimal tax policies for different segments, determining the immediate impact of tax decisions, and expanding the taxpayer base. He added that the artificial intelligence also helps taxpayers across different segments determine expected taxes based on investment expansion and maximize the benefits of state-provided incentives to encourage investment.
El Haddad concluded his statement by saying, that the company appreciate the efforts being made to modernize the tax system and implement digital transformation, and we believe that the Egyptian economy possesses strong capabilities that qualify it to lead this transformation in the region. With continued simplification of procedures, ensuring tax fairness, and providing easy and secure digital tax services, we will have a modern tax system that enhances the investment climate and supports the sustainable growth of the national economy.