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Egypt looks to swell tax revenues by 17percent in next state budget

Monday 04 February 2019 09:25 AM

Tax Authority
Tax Authority

By Sayed Badr

Ministry of Finance looks to increase tax revenues in the state budget of fiscal year 2019-2020 by EGP130bn to EGP900bn up from EGP770bn in fiscal year of 2018-2019, informed source told Al-Mal newspaper.

The Egyptian government has put in place a number of measures to increase tax revenues, such as the computerization of tax declarations and proceedings with the aim of curbing tax evasion practices as well as amending income tax provisions relating to investments into treasury notes and bonds so as to set them apart from other operational revenues.

The impending amendments, targeted to deliver a EGP13bn spike in tax revenues, shall obligate financial entities such as banks to pay two types of taxes, one covering banking proceedings at 22.5 percent and the other relating to returns on investments into debt instruments at 20 percent.

Tax revenues accrued in the first 9 months of this fiscal year reached EGP189bn, increasing by 35.6 percent up from a year earlier, and constituting 78 percent of the state budget, according to Ministry of Finance's monthly report.

The growing tax revenues bolster the state's plan aiming at curtailing deficit of state budget to 7 percent next fiscal year, driving up economic growth rate to 6.5 percent and achieving a primary surplus of 2 percent.

The new state budget shall help increase appropriations serving social care purposes so as to carry out the presidential initiative of " living in dignity." It will also seek to provide citizens with the basic necessities of education, health, social housing, transports, completing developmental projects and road networks, according to the sources.

With the aim of improving Egypt's world ranking in terms of transparency and disclosure, Ministry of Finance will finish off and publish the primary fiscal report in the next two months.