The long list of taxes may get shorter? The government has formed a committee to look into reducing the long list of taxes, customs, and fees imposed on goods and services, a senior government source told Enterprise. The committee will meet this week to review a list of taxes and fees, the source added.

The why: The proposed tax cuts seek to boost local industry, increase exports, attract new investments, and curb inflation by eliminating double taxation and redundant fees that see some goods taxed at up to 45%, the source explained.

How will FinMin make up for lost tax revenue? The Finance Ministry plans to bolster tax revenues by widening its tax base and clamping down on tax evasion, our source said. Moreover, a plan to scrap tax exemptions given to state companies could help the government raise an estimated EGP 600 bn, more than half of the annual EGP 1.1 tn it aims to collect in the current fiscal year. Taxes account for 80-85% of the government’s total revenues, according to the source.

ICYMI- The cabinet last week greenlit the executive regulations for the law scrapping taxexemptions previously granted to state entities and public-sector companies and projects. The bill cancels long-criticized preferential treatment that tipped off the competition balance between public and private sectors and aims to level the playing field for investors.

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