Egypt signed an agreement with the IMF’s Middle East Regional Technical Assistance Center (METAC) that will see the agency provide statistical and technical support to state institutions in banking, finance, and public administration, the government announced at Deloitte’s Egypt Tax Conference 2024 attended by EnterpriseAM.

While the agreement does not include any financial support, Finance Minister Ahmed Kouchouk noted in his remarks at the signing that the partnership is aligned with the government’s three main priorities, which include building a strong and reciprocal relationship with the private sector on tax and economic policy; promoting economic sustainability through a comprehensive view of key economic indicators, which will support tax administration; and launching initiatives that strengthen Egypt's ability to address social inclusion and climate change.

This isn’t our first collaboration with METAC: Kouchouk noted that METAC has been an integral part of Egypt’s tax and public finance reforms in the past, saying that the organization has been a “true and impactful partner” for the region.

New tax reforms on the way: The first phase of the government’s promised tax reforms is set to arrive before year’s end, Kouchouk said, while phase two will be introduced in the coming months. The government is also testing a pilot of its new central tax clearing system, with the platform set to be launched in early 2025.

A carbon tax is not on the horizon: Egypt does not plan to impose carbon tax for at least two years in order to avoid impacting the industrial sector, Deputy Finance Minister Ramy Youssef said. He added that Egypt’s tax administration will develop a mechanism to comply with regulations related to the EU’s Carbon Border Adjustment Mechanism when it comes into full effect — slated for 2026.

Tax unification could be on the cards: A study is also underway to unify taxes and fees on goods, allowing investors to pay all dues through a single entity.

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