Minister of Finance Dr. Youssef Boutros Ghali has announced  new government measures to form a comprehensive package program by which subsidies are to be directly received by the lower brackets while working on other channels to increase decentralization in the decision making process in governorates.  The latter decision has proved practical in governorates such as Alexandria and will be expanded among other areas as part of a long term plan.  The comments in the wake of a meeting that brought Dr. Ghali in an audience with the French Treasury Minister who is currently visiting Cairo.  Ghali explained that Egypt has benefited from the French experience in facilitating customs procedures which has proved irksome among importers in the past.  Ghali also said that the Ministry is currently reviewing means to unify sales tax brackets and transform them into value added tax.

The visiting French Minister Francois Coupe has commended tax and customs reforms over the past two years pointing to measures adopted by France that has led to the deduction of tax rates from 48% to 40% in view of the latter’s negative impact and accordingly noted that a 50% drop in tax rates in Egypt reflects a high achievement.

Ghali also noted that the reduction will have a negative impact on the budget and on the collected amounts; he nevertheless said that the Egyptian community has revealed flexibility in adjusting to the new statesquo.  Already tax returns have multiplied and the government has managed to bridge a gap among citizens where an implied agreement within the community has led to a positive participation from the taxpayers.  The visiting Minister has extended an invitation to Dr. Ghali to visit France to observe the French tax model as well as a number of financial reforms.

(source : Ministry of Finance)