In an open dialogue with representatives of the industrial community at the Federation of Egyptian Industries, Kouchouk stated, “Together, ideas and visions are shared on the path of advanced tax reform that stimulates production and exports.”
Kouchouk added that fiscal discipline cannot be sustainable
without a strong and diversified economy that grows steadily. He said, “The
main concern is how to move the economy forward, increase production and
exports, and create sufficient and decent job opportunities.” He emphasized
that Egypt is open to additional incentive initiatives for industry and
exports, noting that eligibility for incentives is linked to tangible results
on the ground.
The Minister explained, “Any ideas that simplify procedures
for partners and enhance competitiveness, profitability, and growth are
welcomed.” He said that the first package of tax “facilitations” generated a
strong response from the tax community and achieved significant, concrete
results.
Kouchouk pointed out that the trust and cooperation of the
taxpaying community places a significant responsibility on the government to
continue efforts to facilitate, simplify, and incentivize taxation. He noted
that the second package of tax facilitations includes a simplified stamp duty
instead of capital gains tax on stock market transactions for residents, along
with new incentives encouraging large companies to list and trade on the
Egyptian Stock Exchange.
He confirmed that the real estate transaction tax for
individuals remains unchanged regardless of the number of transactions. He
added that a mobile application has been launched to simplify notification and
payment. He also stated that a sample audit system will be applied to
electronic tax returns during 2026.
The Minister indicated that highly specialized tax centers
will provide services through eTax on behalf of the Tax Authority. He explained
that the simplified and integrated tax system for small enterprises includes
both tax and non-tax incentives. Kouchouk added that low-cost financing is
available for the first 100,000 taxpayers joining this system.
Kouchouk emphasized that the private sector’s response to
economic, financial, and tax reforms exceeded expectations. He noted that
private investments increased by 73% last year and tax revenues grew by 35%
without additional burdens.
He stated that improving all government debt indicators and
creating additional fiscal space for human development investment remains a top
priority. He added that the debt ratio of budget entities fell from 96% to 84%
over two years, while the budget’s external debt declined by approximately $4
billion.
Kouchouk added that customs tariffs will be reviewed to
support the localization of industry, maintain fair competition, encourage the
expansion of transit trade, and transform Egyptian ports into industrial and
logistics hubs.
Mohamed El-Sewedy, Chairman of the Federation of Egyptian
Industries, affirmed that the financial and tax reforms are beginning to bear
fruit by easing the burden on taxpayers and enhancing the capacity and
competitiveness of the Egyptian economy. He described last year’s indicators as
“very good” and expressed full support for the Ministry of Finance’s approach
to revitalizing economic activity.
El-Sewedy added that stimulating the industrial sector
drives growth rates and creates sustainable job opportunities.