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Experts' Association identifies three key reasons for tax revenue surge

Businessmen Team economy 23 August 2025 10:03 PM
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Experts' Association identifies three key reasons for tax revenue surge

Egypt's tax revenues hit a record 2.204 trillion EGP in the 2024-2025 fiscal year, driven by electronic tax systems, amicable dispute resolutions, and an expanded tax base, the Egyptian Tax Experts Association announced.

Ashraf Abdel Ghani, a tax accountant and the association's founder, stated that revenues grew by 35.3%, the highest rate in the country's history, without imposing new taxes. He attributed the success to Finance Minister Ahmed Kojak's efforts to foster trust with the business community and encourage investment.

A key factor in the revenue increase was the amicable settlement of tax disputes, which generated 77.9 billion EGP from over 401,000 requests, Abdel Ghani said. He noted this is a significant step toward resolving the 350 billion EGP backlog of tax disputes. He said this was achieved by establishing permanent committees and clear mechanisms for dispute resolution, which will boost state revenues, stabilize taxpayers' finances, and improve the investment climate.

The second factor was the expansion of the tax base, which saw over 104,000 new taxpayers join the official system. The introduction of a simplified tax system for businesses with an annual turnover of up to 20 million EGP was also a significant contributor. Abdel Ghani praised Tax Authority head Rasha Abdel-Aal's commitment to the new system, stating it is designed to permanently streamline procedures and reduce burdens on small businesses.

Finally, Abdel Ghani highlighted the implementation of electronic tax systems as the third reason for the revenue increase, noting they have improved performance and saved time. However, he cautioned that issues within the system, such as slow error corrections, still negatively affect investment, production, and tax revenues.