The government is aiming to collect EGP 24bn from the total tax arrears recorded during the current fiscal year, compared to the 16bn collected during the past fiscal year, head of Income Tax Authority Mostafa Abdel Qader said Tuesday.
Abdel Qader said that the economic crisis following the 25 January Revolution caused the delays in collecting tax arrears. The three year delay led to an increase in tax arrears to EGP 8.6bn.
The total of tax arrears during the past fiscal year was EGP 84.5bn, comprised of EGP 77bn in general taxes and EGP 7.5bn in sales taxes.
Abdel Qader said that Finance Minister Hany Kadry Dimian called for the activation of the tax arrears collection system. He added that the ministry has a comprehensive plan from various focus points that will ease the collection of undisputed taxes.
He said that the authority is currently working on a new mechanism that will help solve tax disputes. The total value of taxes arrears that face disputes is some EGP 77.9bn.
Tax arrears include EGP 26bn from public authorities, EGP 10.3 from state-owned newspapers and some EGP 6.7bn from public sector companies and EGP 6bn from general authorities.
Around EGP 1.95bn are owed by banks and over 200m from investment companies.