FinMin targets a 28% jump in tax revenues for FY 2026/27

Record tax revenues thanks to the widening of the tax base is key to keeping the state budget deficit under control, according an analysis of a budget document seen by EnterpriseAM.

The Finance Ministry is targeting a record EGP 3.5 tn in tax revenues in the FY 2026-2027budget — a 28% jump from the EGP 2.7 tn projected for the current fiscal year, according to the, which was confirmed by two senior government officials.

The tax target is a central pillar of the state's plan to narrow its total financing gap to EGP 2.7 tn, down from EGP 3.6 tn, supported by stronger revenue performance. The ministry is aiming to raise tax revenues to 14.4% of GDP in the new budget — an increase of over 1% of GDP — equivalent to an additional EGP 745 bn in revenues, compared to EGP 361 bn targeted in the current budget.

BACKGROUND- FinMin is signaling it’s not trying to squeeze blood from a stone. The focus for the upcoming fiscal year is on bringing more taxpayers into the system and not putting “additional tax burdens” on businesses that are already paying their dues, Finance Minister Ahmed Kouchouk told us earlier this week at a press conference.

The push is already gaining traction, with some 31k new applicants joining the simplified tax regime out of a targeted 100k, reflecting improving confidence in the system, our sources noted.

Modest changes to the VAT may be in the works: The government is studying a gradual phase-out of the “Table Tax” (special tax treatments) for several goods, moving them toward the standard 14% VAT rate. “Subjecting these goods to the general rate allows investors to deduct input tax, thereby lowering costs and providing an investment advantage,” one source said.

Customs revenues are expected to rise following tariff revisions aligned with industrial localization efforts, and (as usual) cigarettes may see new price hikes next year, according to sources. Real estate tax revenues are projected to increase to EGP 27 bn following amendments and improved collections, up from EGP 18 bn in the current budget.

What to watch for next: The budget moves next to the House of Representatives for committee-level review.