They attributed this growth to efforts by the ministry to boost revenues, expand the tax base, and eliminate exemptions from taxes and fees for state entities engaged in investment and economic activities.
Tax revenues in Egypt have increased by more than EGP 200 billion, exceeding EGP 715 billion during the first five months of FY2024/2025.
This marks a 39% growth compared to the EGP 516 billion collected during the same period of the previous fiscal year, according to government source who spoke to Al-Borsa news.
The source revealed that the Ministry of Finance achieved a 41% increase above its tax revenue target in November.
They attributed this growth to efforts by the ministry to boost revenues, expand the tax base, and eliminate exemptions from taxes and fees for state entities engaged in investment and economic activities.
Other contributing factors included the digitization of payroll taxes for employees in both public and private sectors, as well as increased tax revenues from treasury bills and bonds and from economic authorities.
The tax revenues also benefited from the change in exchange rates, which shifted from EGP 31 per US dollar in the previous fiscal year to approximately EGP 48 during most of the first five months of the current fiscal year.
This allowed the government to collect taxes on foreign currency revenues, including those from foreign oil companies operating in Egypt and the Suez Canal. However, revenues from the Suez Canal decreased due to the ongoing conflict in Gaza.
The sources noted that the Ministry of Finance is working towards meeting its tax revenue targets for the current fiscal year by improving tax administration and unifying procedures across all tax departments.
The ministry has also established an Advance Rulings Unit to issue binding decisions that clarify the tax position of future transactions, facilitating the preparation of investment feasibility studies with greater transparency and compliance with tax laws.
Additionally, the ministry is implementing a simplified tax system for micro, small, and medium enterprises with annual revenues of up to EGP 15 million. It is also expanding taxation on e-commerce activities.
The Ministry of Finance aims to collect EGP 2.02 trillion in taxes during the current fiscal year, compared to EGP 1.5 trillion in the previous fiscal year.
