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The government is preparing a broad overhaul of the non-tax revenue system in a bid to increase collection, a senior government source told EnterpriseAM. While tax revenues have picked up pace — on the back of recent facilitation packages and a simplified regime targeting the informal economy — non-tax revenues are lagging behind.
Why this matters: Despite the government having a large economic footprint through state-owned enterprises, non-tax revenues generate only 12.8% of the state’s total income while tax revenues generate the remaining 87.2%. The problem here isn’t the gap per se — a 90:10 ratio is a sign of a mature and stable economy for countries that aren’t reliant on their resources — the issue is that the mass of non-tax revenue sources, including the Suez Canal Authority, Egyptian General Petroleum Corporation, mining royalties numerous utility authorities, property income, tourism fees, and everything in between, should be generating much more in revenue to the state than they are now.
One immediate fix will be to increase the share of earnings transferred to the Finance Ministry from public sector companies, holding firms, and economic authorities, the source told us. In the first half of the current fiscal year, these transfers totaled EGP 35 bn — a disproportionally low figure given the companies’ strong operating performance, they said. The government has also agreed to claim a larger share of surplus earnings from companies affiliated with or transferred to the Sovereign Fund of Egypt.
The Finance Ministry also intends to bring around 19 economic authorities under the general government budget starting next fiscal year. The move is a tactical step to reduce public debt and strengthen revenues, while offering a clearer and more unified picture of the state’s financial position, the source told us.
What’s next? The upcoming budget will reflect a structural reset in public finances — one designed to create greater fiscal space for government investment, expanding social protection programs, and increasing spending on education and healthcare.
