Egypt Edition 
UAE Edition 
Saudi Edition 
MENA <> India Corridors 
Logistics (MENA) 
Climate (MENA) 
Share
Read Full Issue 
Tax reforms to nearly double tax revenues this fiscal year: The government is looking to secure an additional EGP 195.2 bn in tax revenues — equivalent to 0.98% of GDP — in FY 2025-26 through a bundle of tax reforms, the IMF said in its country staff report (pdf) for the fourth review of our USD 8 bn loan program. To put the target in perspective, the government expects to generate some EGP 200 bn in tax revenues this fiscal year, meaning the reforms are expected to nearly double the pool. These reforms — some of which have already been rolled out — include amendments to the VAT Law, according to EnterpriseAM’s sources.
(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)
“Structural tax measures” coming our way include imposing a 4% withholding tax on freezone goods sold domestically, which is expected to deliver an additional EGP 13.78 bn in tax revenues — equivalent to c.1% of GDP. The current proposal on the table would categorize the 4% tax as a tax deductible expense, and would be deducted from fees paid to the General Authority for Freezones and Investment (GAFI), a senior government source told EnterpriseAM. The proposal — which would require amending Article 41 of the Income Tax Act — also looks to include an additional flat tax on these goods on top of customs duties, according to our source.
Other tax measures on the horizon: The government is looking to ratify amendments to theDisabilities Act with an eye to fully implement the amendments in the current fiscal year, according to the report. The plan also includes the rollout of the overhauled property tax, which is expected to yield tax revenues equivalent to 0.05% of GDP in FY 2025-26, the report shows. Legislative changes governing tax exemptions are also currently in the works to regulate — but not eliminate — disability-related car imports and personal vehicle imports, as well as to help close regulatory and legislative loopholes that allow for tax evasion, a Customs Authority source told us.
And we can expect more changes next fiscal year: “We also commit to legislate another tax package of high-quality tax measures to be delivered in the context of the FY 2026-27 budget to meet the program’s tax revenue objective,” the Finance Ministry said in the report.
