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Kouchouk pledges tax reforms to boost private sector

Businessmen Team news 01 January 2026 01:58 PM
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Kouchouk pledges tax reforms to boost private sector

Finance Minister Ahmed Kouchouk on Thursday announced a sweeping series of tax facilities and economic incentives aimed at stimulating private sector growth and expanding the country’s production and export base.

Speaking during a meeting with social media influencers, Kouchouk emphasized that the government is transitioning toward a partnership model with taxpayers.

"The least we can do for our funding partners is provide a simple and distinguished tax service," Kouchouk said, adding that the tax authority is leading current reforms with full ministry backing.

The Minister revealed that the government is investing heavily in artificial intelligence and digital tools to streamline procedures for investors. This includes the upcoming launch of a mobile application for real estate transactions and three advanced tax centers operated by "E-tax" to provide specialized services.

Key measures announced include: Simplified Tax Systems: Low-cost financing for the first 100,000 taxpayers who voluntarily join a new simplified tax regime.

Stock Market Incentives: Replacing capital gains tax with a stamp duty and eliminating double taxation between holding companies and subsidiaries to boost investment in the Egyptian Exchange.

Healthcare Support: Reducing Value Added Tax (VAT) on medical devices from 14 percent to five percent to support the expansion of universal health insurance.

Excellence Cards: Introducing a "Distinction Card" for compliant taxpayers, offering both tax and non-tax incentives.

Kouchouk highlighted a significant improvement in Egypt's fiscal indicators, noting that the budget debt-to-GDP ratio fell by 12 percent over the last two years, while external budget debt decreased by approximately $4 billion in the same period.

The Minister confirmed that recent reviews with the International Monetary Fund (IMF) were successful. "The Egyptian economy is on the right track," he said, noting that the government has implemented 14 structural reforms under the IMF-supported program.

To further improve the investment climate, the Finance Ministry is working with the Ministry of Investment on 30 measures to reduce customs clearance times and costs. Additionally, the government plans to renew the tax dispute settlement law to encourage out-of-court settlements and speed up VAT refunds.

Kouchouk concluded by stating that the primary goal of these fiscal maneuvers is to create fiscal space to improve living standards for citizens and ensure that economic incentives are directly linked to clear performance targets.