Egypt’s private sector investments increased by 73% in the last fiscal year and by 42% in the first quarter of the current fiscal year, Finance Minister Ahmed Kouchouk announced Monday at an event hosted by the Alexandria Businessmen’s Association (ABA). Kouchouk stated that prioritizing the private sector remains “always a winning strategy” for driving economic growth and enhancing Egypt’s competitiveness.
The minister detailed a series of forthcoming tax measures designed to further incentivize private investment, following more than 40 community dialogue sessions. These include the introduction of an “Excellence Card” for compliant taxpayers, offering priority processing for tax refunds, inspections, and advance rulings. The government also plans to provide low-cost financing to the first 100,000 businesses that join a simplified tax system.
Kouchouk revealed that over 600,000 taxpayers voluntarily submitted new or amended tax returns, resulting in approximately EGP 80 billion in additional tax payments, based on a declared total business volume of EGP 1 trillion. He also noted a 35% increase in tax revenues last year and a 31.5% rise in the first eight months of the current fiscal year, achieved without altering existing tax rates.
Beyond the previously announced measures, the government is implementing additional incentives. These include reducing the value-added tax (VAT) on medical machinery and equipment from 14% to 5% to support expansion in the healthcare sector, and exempting companies providing e-payment and electronic collection services from VAT. Individuals selling property to first-degree relatives will also be exempt from real estate disposal tax. Interest paid on foreign loans by private sector companies involved in strategic projects will be deductible from their tax base.
The government also intends to standardize airport departure fees and publish a manual for administrative seizures to ensure greater fairness and transparency. Kouchouk also highlighted ongoing efforts to encourage major companies to list and trade on the Egyptian Exchange.
Mohamed Henno, Chairperson of the ABA, affirmed the association’s support for the government’s economic program, emphasizing the importance of investment promotion and foreign trade. Henno noted that the presence of both the finance and industry ministers at the ABA event demonstrated “continuous coordination” between the government and the private sector.
While acknowledging the positive economic indicators and the government’s efforts, Henno stressed the need for further improvements in government efficiency and an accelerated pace of digital transformation to fully capitalize on available economic opportunities.
The government is also set to launch three advanced tax centres managed by e-Tax to provide specialized services on behalf of the Egyptian Tax Authority, and is working to address double taxation on dividends between subsidiary and holding companies. A mobile application for real estate disposal tax is also under development to streamline electronic notifications and payments.
