President Sisi directs the launch of the second package of tax facilities
President Abdel Fattah El-Sisi met today with Dr. Mostafa Madbouly, Prime Minister, and Ahmed Kouchouk, Minister of Finance.
The official spokesman for the Presidency of the Republic stated that the meeting witnessed a review The President reviewed the features and details of the second tax facilitation package, which comes under the title of supporting and stimulating tax compliance, within the framework of the tax facilitation strategy that includes four packages, the first of which aims to open a new page and build confidence between the tax authority and financiers, and the second of which aims to stimulate tax compliance with the continuation of support measures, simplify procedures, mechanize, expand the base, and ensure tax compliance during the upcoming packages. The Minister of Finance pointed out that the second tax incentive package targets various segments of the compliant tax community, and aims to support compliant financiers through tax facilities and benefits that enhance confidence and continue voluntary compliance, help them grow and support their competitiveness, guarantee the rights of financiers and provide liquidity to them and to companies..
He reviewed In this regard, the Minister of Finance continues efforts to complete the path of tax reform that stimulates investment within the framework of the “Trust Partnership.” With the business community by launching the tax facilitation initiative, which proved successful in the first package, pointing out that the tax facilitation initiative provided a good model for the state of change desired for the benefit of the business community and the Egyptian economy, as there were 400,000 cases in which old files were voluntarily closed, and 650,000 submitted new or amended returns with additional taxes amounting to about 78 billion pounds, while a new and additional business volume was approved that amounted to about one trillion pounds.
The Minister also indicated that the axes of the second package of the tax facilitation initiative include improving the efficiency and effectiveness of the value-added tax refund system, launching distinguished tax support services centers, and approving a package of incentives and benefits for those liable for taxes, in addition to a number of other reforms in response to the requests of the business community, financiers, accountants, and tax experts.
Ambassador Mohamed El-Shenawy, the official spokesman, stated that the President directed the launch of the second tax facilities package, stressing the importance of continuing to develop the tax system and building new relationships between the parties to the tax system based on trust, credibility and certainty, while improving all tax services, providing additional facilities, and building confidence with investors.
In the same context, the Minister of Finance reviewed the developments in preparation and preparation for implementing real estate tax facilities, where he explained in this regard that the tax vision aims to reduce tax burdens taking into account the social and economic dimensions, simplify tax procedures, implement digital transformation, and address the negatives revealed by practical application, adding in this regard that the facilities provided by the state include simplifying the tax return, increasing the period of inventory and assessment to seven years, increasing the tax exemption limit for private housing, and raising or excluding the tax. In the event of crises, canceling the tax debt and the delay fee in specific cases, reforming, developing and facilitating the tax appeal mechanism, electronic payment of the tax, and setting a maximum limit for the delay fee not to exceed the original tax.
The official spokesman explained that during the meeting, developments in financial and economic performance and efforts to restore investor confidence were also reviewed, within the framework of an integrated and coherent economic vision that contributes to increasing the competitiveness of the Egyptian economy.
In this context, the Minister confirmed that economic activity is moving in a positive direction, and that private investments recorded a growth of 73% during the last fiscal year, noting that there are balanced and good indicators that stimulate the path of restoring greater investor confidence in the Egyptian economy, and stressing the commitment to maintaining a large primary surplus that enables increased spending on human development and social protection programs, and an effective contribution to stimulating industrialization. And export.
The official spokesman stated that The Minister of Finance also reviewed the plan to develop the customs system, noting in this regard that the development plan had been prepared in full cooperation and coordination between the Ministries of Finance (Customs Authority) and Investment and Foreign Trade, and that the plan reflects the requests of productive projects and chambers of commerce, and aims to address the challenges facing the business community and develop the necessary policies to support and motivate investors, which contributes to increasing exports and enhancing the competitiveness of the Egyptian economy, through joint work to simplify procedures and develop the customs system.
The Minister of Finance added that there are three axes to the plan to develop the customs system, including reducing customs release time, procedures to facilitate and mechanize the customs system, and procedures to tighten control and reduce smuggling. In this context, he pointed to targeting the implementation of a unified and rapid inspection system, procedures for expanding the pre-clearance system and accepting electronic payments, and training customs authority workers and raising their capabilities. Technical.
The official spokesman indicated that the Minister of Finance also reviewed during the meeting the efforts to reduce the debt rates of the budget agencies to the gross domestic product as an advanced national priority, stressing the continued implementation of the budget agencies’ debt management strategy, adding that the private sector expressed great confidence in the potential of the Egyptian economy and the investment climate, which allowed the conclusion of major investment deals such as the “Ras El Hekma” project. And “the science of the Romans.”
" This, Mr. President stressed the need to build on the existing improvement in economic indicators, and work to increase private investments, to confirm the ability of the private sector to drive growth and development. He also stressed the need to work towards enhancing investment in the human element with innovative programmes, initiatives and ideas, in parallel with training and qualification, to ensure the development of performance to serve the economy, and the importance of taking all necessary measures to implement the digitization system in the work of the Ministry of Finance, including in the areas of customs and taxes, stressing the need to ensure continued Governance of all procedures.
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