Finance Minister Ahmed Kouchouk began a community dialogue with the Federation of Chambers of Commerce on Wednesday, telling business representatives that the country’s political leadership is committed to a “partnership of trust” with the private sector.
Speaking at the federation’s headquarters, Kouchouk addressed the commercial community directly regarding the government’s second package of tax facilities.
“Together and with you, we succeeded in the first package of facilities,” Kouchouk told the attendees. “Today, we dialogue about the incentives of the second package.”
The meeting, attended by Federation President Ahmed El-Wakil, focused on gathering feedback to refine the proposed reforms. Kouchouk emphasised that the ministry is open to all proposals to improve the facilities “now and in the future,” stating that the government is acting on the specific tax challenges voiced by the business community to help them compete and grow.
“The confidence and response of the tax community to the first package motivates us to exert more effort and responsibility to complete what we started together,” Kouchouk said.
El-Wakil praised the collaborative approach during the session.
“We have set together the principles and foundations of partnership between the government and the private sector and paved the way for restoring trust between the two sides,” El-Wakil told the minister.
New Incentives and Stock Market Reforms
During the dialogue, Kouchouk outlined key components of the second package designed to support compliant taxpayers, including a transition from capital gains tax to a stamp duty system to stimulate trading on the Egyptian Exchange. He also promised specific tax benefits to encourage companies to list on the exchange for a three-year period.
The package includes a “white list” and “excellence card” for compliant taxpayers, offering streamlined procedures for audits and tax refunds.
Other key measures discussed include:
- VAT Adjustments:A reduction of Value Added Tax (VAT) on medical devices from 14% to 5%, a full exemption for dialysis inputs, and the removal of VAT on transit trade services.
- Strategic Debt Relief:Allowing private joint-stock companies in strategic projects to deduct interest on foreign loans from their tax base.
- Liquidity Support:Enabling the offsetting of credit and debit balances and ensuring faster VAT refunds to improve company liquidity.
- Real Estate:Introducing a mobile application for real estate disposal notifications and a fixed 2.5% tax on unit sales.
Rasha Abdel Aal, head of the Tax Authority, told the gathering that the authority is establishing premium service centres, starting in New Cairo, Sheikh Zayed, and New Alamein. She added that temporary tax cards valid for four months would be issued to speed up company incorporation.
