Finance Minister Mohamed Maait assured that there aren’t any new burdens in Egypt’s tax coverage technique for 2024/2030, no improve in tax charges, and that the brackets are steady.
The Finance Ministry won’t transfer a single step in the direction of approving this doc earlier than holding a group dialogue, he mentioned, stressing that there might be no prejudice to the business and industrial earnings tax.
“We wish the factories to function, produce and supply job alternatives,” the minister mentioned, assuring there can even be no prejudice to the earnings tax charge.
He added that tax exemption restrict might be raised by 33 p.c to scale back the burden on all state employees, together with the personal sector, on March 1.
Maait famous that the state’s public funds will witness a structural reform to approve the “normal authorities funds” in order that it contains the entire revenues and expenditures of the state’s normal funds, and the budgets of financial our bodies.
With this legislative modification to the unified public finance legislation, tax revenues won’t exceed 35 p.c of normal authorities revenues estimated at 5 trillion kilos, Maait added.
Throughout the annual tax convention of the PwC, the minister affirmed the consistency of the state’s public funds in a approach mirrored the balanced and reassuring efficiency of the funds in the course of the previous seven months.
The unfavorable repercussions of the distinctive international financial challenges, the complexity of which will increase with worldwide geopolitical tensions following the outbreak of conflict in Gaza, has impacted the efficiency of the Egyptian economic system, he famous.
The minister referred to a decline in income actions, and the doubling of the burden of public expenditures to fulfill the inevitable obligations and fundamental wants of residents on account of rising costs of products and companies, impacted by an unprecedented inflationary wave sweeping the whole world.
The federal government achieved LE173 billion in main surplus, he acknowledged, in comparison with LE33 billion in the identical interval of the final fiscal 12 months, whereas the debt-to-domestic product ratio declined and the funds deficit reached 5.8 p.c on account of the rise in rates of interest.
Maait added that there are indicators that mirror an enchancment within the outlook of buyers in worldwide markets for the Egyptian economic system because the required return on Egyptian bonds in worldwide markets witnessed a lower of fifty p.c, and the price of insurance coverage on these bonds decreased.
Edited translation from Al-Masry Al-Youm
