President Abdel Fattah El-Sisi has issued directives to launch the second package of tax facilities, emphasizing the importance of developing the tax system and strengthening trust and credibility among all stakeholders.
The President stressed the need to improve the quality of services provided and to introduce additional facilitations to support investors. This came during a meeting attended by Prime Minister Dr. Mostafa Madbouly and Deputy Minister of Finance Dr. Ahmed Kouchouk.
Titled “Supporting and Encouraging Tax Compliance,” the second package comes as part of a broader plan consisting of four phases aimed at transforming the relationship between the Tax Authority and taxpayers. This phase seeks to drive voluntary compliance by simplifying procedures and incentivizing adherence, in addition to expanding digital transformation and enlarging the taxpayer base.
According to the spokesperson for the Presidency, the second package aims to support the compliant tax community by offering benefits and facilities that help companies and taxpayers grow and enhance their competitiveness, ensuring better economic liquidity and protecting their rights. The Minister of Finance clarified that the first phase achieved significant success, resolving 400,000 pending tax files voluntarily and submitting more than 650,000 new or amended tax returns. This contributed an additional EGP 78 billion in taxes and registered an extra EGP 1 trillion in business volume.
In a related context, the second package includes improving the efficiency of the value-added tax system and establishing high-quality tax service centers, along with introducing new advantages for tax-compliant taxpayers, responding to the demands of the business community.
The package also covers plans to enhance the property tax system, including easing the burden on citizens by extending the valuation period to seven years and increasing the exemption threshold for private residences. Additionally, amendments were approved to set caps on late fees, reduce administrative burdens, and provide special facilities for exceptional cases.
At the conclusion of the meeting, the President affirmed the importance of relying on the private sector as a key driver for stimulating economic growth and sustainable development. He also stressed the need to invest in human resources through innovative training programs while prioritizing the acceleration of implementing digital transformation in the tax and customs sectors to ensure continued effective governance of all procedures.
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