The official spokesperson, on behalf of the Presidency, stated that the meeting included the President being briefed on the features and details of the second package of tax incentives, titled “Supporting and Encouraging Tax Compliance.” This comes within the framework of the tax incentives strategy, which includes four packages. The first aims to open a new chapter and build trust between the tax authority and taxpayers, while the second aims to encourage tax compliance while continuing support measures, simplifying procedures, implementing digital systems, expanding the tax base, and ensuring compliance in the upcoming packages.

The Minister of Finance noted that the second incentive tax package targets various segments of the compliant tax community. It aims to support compliant taxpayers through tax facilities and advantages that enhance trust, promote voluntary compliance, assist in growth, support competitiveness, protect taxpayers’ rights, and provide liquidity for individuals and companies. The Minister also reviewed efforts to complete the investment-stimulating tax reform process within the framework of the “Trust Partnership” with the business community through the launch of the tax incentives initiative, which proved successful in the first package. The initiative provided a good model for the desired change for the benefit of the business community and the Egyptian economy, with 400,000 cases of voluntary closure of old files, 650,000 new or amended declarations resulting in additional taxes of approximately 78 billion EGP, and the establishment of new and additional business volume amounting to about one trillion EGP. The Minister also mentioned that the second package of the tax incentives initiative includes improving the efficiency and effectiveness of the VAT refund system, establishing specialized tax support service centers, approving a package of incentives and benefits for compliant taxpayers, along with other reforms to meet the requests of the business community, taxpayers, accountants, and tax experts.

Ambassador Mohamed El-Shenawy, the official spokesperson, stated that the President directed the launch of the second tax incentives package, emphasizing the importance of continuing to develop the tax system, building new relationships among its stakeholders based on trust, credibility, and certainty, improving all tax services, providing additional facilities, and strengthening investor confidence. In this context, the Minister of Finance reviewed the progress in preparing to implement property tax facilities, explaining that the tax vision aims to reduce tax burdens considering social and economic dimensions, simplify tax procedures, implement digital transformation, and address shortcomings revealed by practical application. The state-provided facilities include simplifying tax declarations, extending the assessment period to seven years, raising the exemption limit for private housing, increasing or waiving taxes in cases of crises, canceling tax debts and late payment penalties in specific cases, reforming, developing, and facilitating the tax appeal mechanism, implementing electronic tax payments, and setting a maximum for late payment penalties that does not exceed the principal tax.

The spokesperson also explained that the meeting reviewed developments in financial and economic performance and efforts to restore investor confidence within a coherent economic vision aimed at enhancing the competitiveness of the Egyptian economy. The Minister emphasized that economic activity is trending positively, private investments grew by 73% in the last fiscal year, and there are balanced and favorable indicators that further encourage the restoration of investor confidence in the Egyptian economy. He confirmed the commitment to maintaining a large primary surplus, which allows for increased spending on human development and social protection programs and effectively contributes to stimulating manufacturing and exports.

The spokesperson added that the Minister of Finance also reviewed the plan to develop the customs system, noting that the development plan was prepared in full cooperation and coordination between the Ministry of Finance (Customs Authority) and the Ministry of Investment and Foreign Trade. The plan reflects the demands of production projects and chambers of commerce and aims to address challenges facing the business community and set policies to support and incentivize investors, thereby contributing to increasing exports and enhancing the competitiveness of the Egyptian economy through joint efforts to simplify procedures and develop the customs system. The Minister stated that the plan includes three main axes: reducing customs clearance times, facilitating and digitizing customs procedures, and tightening control to combat smuggling. This includes implementing a unified and fast inspection system, expanding pre-clearance procedures, accepting electronic payments, and training customs staff to enhance their technical capabilities.

The spokesperson noted that the Minister also reviewed efforts to reduce the debt ratios of budgetary authorities to GDP, considering it a high national priority, and confirmed the continued implementation of the budgetary debt management strategy. He added that the private sector has shown great confidence in the capabilities of the Egyptian economy and investment climate, enabling the conclusion of major investment projects such as the “Ras El-Hekma” and “Alam El-Roum” projects.

The President stressed the need to build on the ongoing improvements in economic indicators, increase private investments to demonstrate the private sector’s capacity to drive growth and development, and enhance investment in human capital through innovative programs.