{"id":561395,"date":"2021-04-06T04:00:43","date_gmt":"2021-04-06T04:00:43","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/06\/operation-tax-spend\/"},"modified":"2021-04-06T04:00:43","modified_gmt":"2021-04-06T04:00:43","slug":"operation-tax-spend","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/06\/operation-tax-spend\/","title":{"rendered":"Operation tax + spend"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>Higher tax revenues will be used to subsidize increased government<\/strong> <strong>spending in the coming fiscal year<\/strong>, Finance Minister Mohamed Maait said yesterday. The Finance Ministry expects tax receipts to grow 11-12% in FY2020-2021, which will allow the government to pay for an increase in wages over the coming year, Maait told Asharq Business on the sidelines of a conference (<a href=\"https:\/\/bit.ly\/3upZePm\">watch, runtime 0:58<\/a>).<\/p>\n<p><strong>Where\u2019s the money coming from?<\/strong> Maait didn\u2019t shed any light on how the ministry is planning to boost tax revenues. <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a6b6f594-177a-428b-861a-f13060029d6e\">Cabinet said last month<\/a> that the higher revenues will be underpinned by an expanded tax base and the rollout of electronic payment, and made no mention of changes to the tax code.<\/p>\n<p><strong>A mixed picture:<\/strong> The ministry has lowered its revenue expectations for the year ahead, and now thinks it will take EGP 150-160 bn less than EGP 1.3 tn figure in <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a6b6f594-177a-428b-861a-f13060029d6e\">the draft budget<\/a> released last month, said Maait, who blamed revenue shortfalls in the tourism and aviation sectors. Despite this, overall revenues are still forecast to rise by 15% during the year, he added.<\/p>\n<p><strong>A EGP 420 bn-shaped hole:<\/strong> The ministry has lost out on EGP 200 bn in revenues during the current fiscal year due to the pandemic, <a href=\"https:\/\/bit.ly\/2Q0vMRi\">Al Arabiya<\/a> reported Maait as saying during the conference. This puts the total shortfall caused by the pandemic over the past two years at <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/cb83464a-f0fb-4a40-9ec8-41af42bbf9b1\">some EGP 420 bn<\/a> \u2014 more than a third of the total revenues the government expected to take over the course of the current fiscal year.<\/p>\n<p><strong>GDP growth is expected to slow to 2.8% in FY2020-2021<\/strong>, compared to <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/422458d6-8b81-411d-856a-d45787d8866e\">3.6% the<\/a><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/422458d6-8b81-411d-856a-d45787d8866e\">previous fiscal year<\/a>, the minister said. This puts predictions at the lower end of the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c7268a5b-a6d2-48a8-b108-8110d3f0e58e\">2.8-3.5% growth range previously announced<\/a>.<\/p>\n<p><strong>But brighter times are ahead:<\/strong> Egypt\u2019s real output is forecast to reach 5.4% in FY2021-2022 and could climb to 6% in FY2022-2023, the minister had <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a6b6f594-177a-428b-861a-f13060029d6e\">sai<\/a><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/a6b6f594-177a-428b-861a-f13060029d6e\">d last month.<\/a><\/p>\n<p><strong>ALSO FROM THE CONFERENCE - <\/strong><\/p>\n<p><strong>The government\u2019s FY2020-2021 export subsidies are set to breach EGP 25 bn<\/strong>, <a href=\"https:\/\/bit.ly\/3sX75E0\">Hapi<\/a><a href=\"https:\/\/bit.ly\/3sX75E0\">Journal<\/a> reports Trade Minister Nevine Gamea saying at the same industry event. Representatives from Export Councils <a href=\"https:\/\/bit.ly\/3rSiPGa\">met<\/a> yesterday with the ministry to put the final touches on the new program. The government had <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/f81a9b44-52eb-4d20-94fb-6457fa38ee1a\">allocated EGP 7 bn<\/a> towards subsidy payments in its FY2020-2021 budget, up from EGP 6 bn the year prior. The Export Subsidy Fund has been paying out <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/78bd0ba1-f9e2-47d9-9e64-429427e89f49\">EGP 600 mn in arrears per month<\/a>, in an attempt to settle overdue payments within three years.<\/p>\n<p><strong>An additional export subsidy scheme focusing on projects in the Suez Canal Economic Zone, Upper Egypt and the border governorates<\/strong> is planned for the coming year in cooperation with the Finance Ministry, Gamea <a href=\"https:\/\/alborsaanews.com\/2021\/04\/05\/1433105\">said<\/a>. The minister also said manufacturers could expect government support to cover shipping costs of their goods to African markets, as part of a government led strategy to expand exports to the continent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Higher tax revenues will be used to subsidize increased government spending in the coming fiscal year, Finance Minister Mohamed Maait said yesterday. The Finance Ministry expects tax receipts to grow 11-12% in FY2020-2021, which will allow the government to pay for an increase in wages over the coming year, Maait told Asharq Business on the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":561396,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[104,72,9728,348,277,331,278,416,69],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-561395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam","tag-finance-minister","tag-gdp","tag-mohamed-maait","tag-nevine-gamea","tag-state-budget","tag-suez-canal-economic-zone","tag-tax","wpautop","entry"],"acf":{"mongo_id":"388d4819-de8e-4a30-8c86-5a4aaaca9d4e","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/4\/49.jpg","photo_position":"above","related_issue":[561391],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Operation tax + spend - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/04\/06\/operation-tax-spend\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Operation tax + spend\" \/>\n<meta property=\"og:description\" content=\"Higher tax revenues will be used to subsidize increased government spending in the coming fiscal year, Finance Minister Mohamed Maait said yesterday. 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in FY2019-2020 as a result of the economic fallout caused by the coronavirus pandemic, Finance\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/9\/157.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":571356,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/10\/egypt-has-deployed-just-egp-40-bn-of-funding-from-the-egp-100-bn-stimulus-and-bailout-funding-maait-says\/","url_meta":{"origin":561395,"position":2},"title":"Egypt has deployed just EGP 40 bn of funding from the EGP 100 bn stimulus and bailout funding, Maait says","author":"enterpriseam admin","date":"10 May 2020","format":false,"excerpt":"The government has deployed just EGP 40 bn of the EGP 100 bn earmarked by the government to protect the economy against the covid-19 pandemic, Finance Minister Mohamed Maait said on Thursday, suggesting it has resources left to help cushion the blow to the economy. Some EGP 5.1 bn has\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/5\/87.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":616921,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/03\/13\/half-of-the-proceeds-from-the-privatization-program-earmarked-to-reduce-public-debt-maait\/","url_meta":{"origin":561395,"position":3},"title":"Half of the proceeds from the privatization program earmarked to reduce public debt -Maait","author":"enterpriseam admin","date":"13 March 2024","format":false,"excerpt":"There will also be no tax increases for investors in the next fiscal year","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/2\/1803.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597533,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/30\/egypt-working-on-new-income-tax-vat-laws-maait\/","url_meta":{"origin":561395,"position":4},"title":"Egypt working on new income tax, VAT laws -Maait","author":"enterpriseam admin","date":"30 July 2019","format":false,"excerpt":"LEGISLATION WATCH- Brace yourself for a brand new income tax law: The government is working on a new income tax law during the current fiscal year, and expects to have an initial draft ready within two months, Finance Minister Mohamed Maait said at a press conference yesterday. Maait did not\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/1\/661.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":567376,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/01\/21\/egypt-to-beat-debt-to-gdp-target-this-year-maait\/","url_meta":{"origin":561395,"position":5},"title":"Egypt to beat debt-to-GDP target this year -Maait","author":"enterpriseam admin","date":"21 January 2020","format":false,"excerpt":"Egypt to beat debt-to-GDP target this year + all you need to know about FinMin\u2019s epic presser: The Finance Ministry expects to reduce its debt-to-GDP ratio to 83% by the end of the current fiscal year, easily beating the 89% target included in the FY 2019-2020 budget, Finance Minister Mohamed\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/1\/658.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=561395"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561395\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/561391"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/561396"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=561395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=561395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=561395"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=561395"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=561395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}