The Ministry of Finance announced that tax revenues rose by 30.8%, equivalent to EGP 380.3bn, during the first eight months of FY 2025/2026, bringing total collections to EGP 1.614trn, compared to EGP 1.234trn in the same period of the previous fiscal year.
In a report issued on Wednesday, the ministry attributed the increase to broad-based growth across most tax categories, driven by improved engagement with the business community and the impact of recent tax reform packages. These reforms were reflected in stronger income tax performance and higher proceeds from commercial and industrial activities, supported by incentives targeting small and medium-sized enterprises (SMEs).
Amendments to the Value Added Tax (VAT) law also contributed to higher collections on locally produced goods and services, while the continued automation of tax systems enhanced administration efficiency and boosted revenues by expanding the tax base.
The ministry noted that income tax revenues surged by around EGP 167bn, or 46.5%, to EGP 526.7bn. This was underpinned by a EGP 39.8bn increase in payroll taxes, bringing the total to EGP 149.7bn, alongside a EGP 23.2bn rise in taxes on commercial and industrial activity to EGP 69.9bn. Revenues from non-commercial professions grew by 46.9% to EGP 11.6bn, while corporate tax receipts climbed by 53% to EGP 290.4bn.
VAT revenues rose by EGP 129.2bn, or 22.5%, to EGP 702.4bn over the period. VAT on goods increased by 14.2% to EGP 374bn, while VAT on services advanced by 31.5% to EGP 100.8bn.
Revenues from property taxes increased by EGP 58.7bn, or 27.7%, to EGP 270.8bn, while taxes on international trade rose by EGP 10.3bn, or 13%, to EGP 89.5bn. Non-tax revenues also recorded strong growth, increasing by EGP 192.7bn to reach EGP 400.8bn.
The ministry added that the primary surplus in the state budget rose to EGP 656.8bn, equivalent to 3.1% of GDP, during the first eight months of the fiscal year, compared to EGP 330bn, or 1.8% of GDP, in the same period last year.
The overall deficit stood at EGP 974.5bn, equivalent to 4.6% of GDP, compared to EGP 879.3bn, or 4.8% of GDP, a year earlier. The ministry attributed the improvement in the deficit ratio primarily to the strong growth in tax revenues.
The report also highlighted ongoing efforts to contain public spending as part of a broader strategy to enhance debt management. These measures include diversifying financing sources, limiting reliance on the Treasury Single Account, and adhering to statutory limits. It also pointed to the introduction of a cap on public investment spending of EGP 1.2trn for FY 2025/2026.
Total public revenues increased by 39.7%, or EGP 573bn, to EGP 2.015trn, up from EGP 1.442trn, with tax revenues accounting for around 80% of the total and non-tax revenues 19.9%.
Meanwhile, total public expenditure rose by EGP 645.8bn, or 28%, to EGP 2.954trn, compared to EGP 2.308trn in the same period of the previous fiscal year.
