A new social security package in the works? Finance Minister Mohamed Maait announced yesterday that we could be in line for a new package of social security measures, following instructions from President Abdel Fattah El Sisi, aimed at easing the financial pressures on the people, according to a Finance Ministry statement. The new package, which will include wage and pension hikes and an increased tax threshold, will be put for discussion in public consultations next month, along with the proposed five-year tax policy framework, the amendments to the Income Tax Act, and the state budget for FY 2024/2025.

Using AI to collect dues? Maait said that the ministry intends to utilize AI to collect state treasury's dues. He added the move would help the government estimate the actual size of the Egyptian economy by accounting for informal businesses. He did not specify how the system would work.

Extended property tax exemptions for key sectors: The Finance Ministry also submitted a proposal to the cabinet to extend the property tax exemptions for industrial, poultry, and other key sectors until the end of 2026 to support these industries.

More tax incentives for investment: Maait said the Finance Ministry is also proceeding with the legal procedures to exempt strategic industrial projects from certain types of taxes for five years, under the proposed five-year tax policy framework. The framework promises lower fixed wage and commercial profit taxes, tax cuts for new projects, and an up-to-date tax system.

DATA POINT-The e-invoicing system has ramped up tax revenues during the past FY by 26.9%, said Maait, noting that the increase was driven by efficiency rather than collecting more taxes from investors.

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