An official source at the Ministry of Finance said that the ministry is currently studying the increase of income taxes on some sectors to achieve the target revenue.
According to the source, who asked not to be named, there are some sectors that did not achieve the tax revenue target during the past fiscal year. “We seek to structure taxes on corporate income to achieve the target outcome,” according to the source. The amendments are expected to be finalised next year.
Tax revenues increased by 31% to reach EGP 462bn compared to EGP 352bn in fiscal year 2015/2016. Income tax increased by 108% to EGP 209bn during the past fiscal year.
The top 50 companies accounted for 10% of income tax revenues during the past fiscal year. The growth rate of the grocery trade sector reached 350%, banks 4%, communications 175%, and electrical appliances 180%.
According to the source, the Ministry of Finance is currently preparing a law to standardise tax procedures, “which includes all the rights of financiers and duties, in addition to simplifying procedures,” according to the source. With a specific timeframe, “it is expected to submit the law to parliament during the current session,” said the source.
The Ministry of Finance aims to increase tax revenues during the current fiscal year by 1% to reach EGP 604bn, compared to EGP 462bn in the past fiscal year, aiming to increase income tax revenues by 26% to EGP 284bn, compared to EGP 226bn during the fiscal year 2016/2017.