Egypt’s President Abdel Fattah Al-Sisi on Sunday instructed the government to launch the second phase of tax facilitation measures aimed at encouraging voluntary compliance and easing the burden on taxpayers, the presidency said following a meeting with Prime Minister Mostafa Madbouly and Finance Minister Ahmed Kouchouk.
Al-Sisi was briefed on the new package, part of a four-phase strategy designed to rebuild trust between the Tax Authority and taxpayers, expand the tax base, simplify procedures and strengthen compliance.
Kouchouk said the second package targets compliant taxpayers across all segments, offering incentives and facilities intended to “reinforce trust, ensure continued compliance and support business growth”, while improving corporate liquidity.
He noted that the first phase of the initiative led to the voluntary closure of 400,000 old files and the submission of 650,000 new or amended returns, generating EGP 78bn in additional taxes and revealing around EGP 1trn in previously undeclared economic activity.
The second phase includes reforms to the VAT refund mechanism, the establishment of premium tax support centres, and a range of incentives for compliant taxpayers, alongside measures responding to long-standing demands from business associations, accountants and tax experts.
Al-Sisi emphasised the need to continue upgrading the tax system, expand facilitation measures and strengthen confidence among investors, the presidency said.
Kouchouk added that the government is preparing a new set of real estate tax facilitations, including simplified filings, extending the assessment cycle to seven years, raising the exemption threshold for primary residences, waiving taxes and penalties in specific cases, and capping late fees.
The meeting also reviewed macroeconomic developments and efforts to restore investor confidence. The finance minister said private investment grew 73% in the last fiscal year and that the government remains committed to maintaining a strong primary surplus to support human development, social protection programmes, manufacturing and exports.
He said the customs reform plan, developed jointly by the finance and investment ministries, aims to remove obstacles facing businesses, boost exports and enhance competitiveness by reducing clearance times, expanding pre-clearance procedures, introducing unified inspection systems and tightening controls to curb smuggling.
Kouchouk also pointed to ongoing efforts to reduce public debt as a share of GDP, noting improved private-sector sentiment reflected in major recent investment agreements, including the Ras El Hekma and Alam El Roum projects.
Al-Sisi called for capitalising on improving economic indicators, further increasing private investment, strengthening human capital through training and skills development, and accelerating digital transformation in tax and customs administration while ensuring strict governance across all procedures.
