“Directions to pay taxes electronically”.

“26 commercial banks and 1480  branches provide electronic payment service for payment of taxes and customs duties”

“Tax payment in post offices on banks’ holidays, acceptance of small sums in case of necessities”

“19897 phone hotline to receive and answer the taxpayers’ enquiries and problems”

On the occasion of tax filing season, Dr. Almorsy, announced that the ministry is working in all procedures taken last year to secure tax proceeds.

He added that he instructed the Head of Egyptian Tax Authority to prepare a reminding instruction publication to pass out to all tax offices across the country, asserting the facilities approved by the Ministry of Finance and provided to taxpayers when they pay taxes for 2013, starting from 1st January to   31st March for individual returns and till 30th April for corporate returns.

The Minister noted that the said instructions include directions to the individual and corporate taxpayers to electronically pay taxes due on their last year profits through commercial bank branches, which participate in government E-payment system. On banks holidays, they can pay through post offices in tax silver account no. 78678, small sums should be accepted by tax offices.

Taxpayers could know bank branches names and addresses participating in E-payment system from Tax Authority’s site on the internet: www.incometax.gov.eg or from its hotline no. 19897.

In this context, he clarified that the said instructions aimed at protecting public funds and avoiding any risks or threats could be encountered under such armed robberies suffered by exchange offices, jewelry stores and vehicles transporting money. He added that the Ministry of Finance coordinates with the CBE to enhance E-payment system for such burden in current conditions.

The instructions also contains the need to enter all tax returns data received from taxpayers daily in the authority’s E-database and taking all the necessary procedures  to protect such returns, then copies thereof should be sent to be transferred to microfilm and filed in the authority’s E-archive.

As for the benefits of E-payment system, Mr. Mamdouh Omar the head of the Egyptian Tax Authority affirmed that the E-payment system eased payment of last year taxes and it is available in 1480 branches of 26 commercial banks across the country. The E-payment and collection center in the Ministry of Finance oversees the E-payment system, which is administered by an IT company operates government financial institutions- E-finance, that fully owned by national banks.

He assured that the E-payment system is linked through a secured electronic net to the participating bank branches in all tax offices across the country, as well as to the Single Treasury Account (STA) of the CBE. Through a screen in such branches, taxpayer can know the due tax value, then pay it in full and get a bank payment certificate. Thereafter, the commercial bank informs the CBE to add such value to the single treasury account (STA). All these transactions are done in few minutes without any risks.

Osama Twakul, the new Head of Large Taxpayers Center confirmed that the Center prepared for the season of tax returns filing by setting up many facilities, as it is permitable to file the returns electronically without the need to go to the center several times. Furthermore, the center will send reminding letters of the date of tax returns filing to taxpayers, the center members, urging them to pay the due taxes. They will be informed with the names and addresses of the bank branches participating in the E-payment system to go to the nearest one and pay.

He also added that Large Taxpayer Center contacts its customers, who have tax arrears for previous years, urging them to pay. He stressed the Center’s keenness to settle any problems with taxpayers amicably, without proceeding in appeal committees or internal committees. All the aforementioned procedures are to establish confidence between taxpayers and the Egyptian Tax Authority.

Head of Large Taxpayers Center stated that the Center is organizing an expanded meeting between chartered accountants and tax experts as they are the third pillar in tax system, in order to identify the challenges may be faced and how to address and resolve them.

Mr. Ibrahim Sarhan, the Managing Director of E-Finance, noted that E-payment service includes tax, customs duties and sales tax payment.

He added that E-Payment and Collection System is linked to all parties, e.g. the CBE, the operating banks in Egypt, the Ministry of Finance & its authorities and the Egyptian Banks Company. The company has an encrypted and secured network, according to the highest security standards to ensure confidentiality of data, in line with the parameters set by the CBE and the MOF and included in their memorandum of understanding, in which the activities and  performance criteria of E-Finance are defined.

He said that estimates of the Ministry of Finance indicating to the package of tax amendments, streamlining energy subsidy measures, and the trend to promote Egyptian investment environment through designing new financial instruments as Skuk and others, will contribute in creating additional resources for general budget to reach 31.2 billion LE. in current fiscal year, representing 1.8 % of (GDP), up to 104 billion LE. in FY 2013/2014 , namely  5% of Egyptian GDP.

He added that the government is planning to direct 10% of such additional revenues, first of all, to enhance social protection programs for the most needy sects, targeting the number of beneficiaries increase up to 2 million by the end of the next FY 2014/2013, with an annual pension increase to ensure decent life for their families.

He noted that one of the targeted programs is to support budget of free treatment drugs, babies’ formula, school nutrition, low-cost housing, transformational training programs, as well as the regular increases in budget for such programs.

He indicated that most of the achieved surplus resulted from economic reform measures will be used in narrowing general budget deficit to reach 5% of GDP by 2017/2016, against 10.8  % in FY 2012/2011, consequently, limiting public debt to range between 65% and 70% by 2017/2016.

He asserted that, such reforms had not been introduced, would result in medium- and long-term structural problems of national economic indicating that energy subsidy allocations in current budget will increase to reach 117 billion LE, representing 182% of allocations earmarked for education, 426% for health and 210% of total general investments included in budget, which is  impossible to continue.

In light of the social demand for justice to build Egyptian human, who enjoys the full human rights such as education, health care and decent life, especially in the rural and slum areas, which are still deprived of many basic services.

As for Sukuk, the Minister confirms that Sukuk is one of the new financial instruments which achieved success and acceptance on global and Arab level, and it is real addition to financial instruments, it is capable to mobilize and attract more savings and more money inflows, which in turn will positively affect the Egyptian financial market. As Sukuk, as well as stocks, securities and treasury bills are the appropriate means to mobilize savings, to be redirected to investment sector.

He said that many of global and regional financial institutions direct part of its financial portfolios to Sukuk investment. According to the latest published numbers, global Sukuk issuance is estimated at $ 136 billion last year (2012).

As for Sukuk draft law, the Minister explained that he is keen to issue Sukuk law after full consensus whether the parties or Al-Azhar, noting that the Ministry of Finance has introduced several substantial amendments during the last two weeks to such draft law to become legally for all types of public and private Skuk operation and coordination with the relevant parties.

He indicated that the law will establish a permanent central legitimate body to supervise Sukuk offerings. Its final decision will be binding to the government and any other party issues Sukuk.

The Minister said that the role of legitimate body is not only to express its point of view, but article 15 of the draft law gives more space to the body’s terms of reference, it will provide the legal opinion in Sukuk issuance , adoption of its structures , contracts and issuance bulletin, verifying that dealing in Sukuk, and distribution of its revenues since its issuance until recovery, will be in accordance with Islamic law. The body’s role will extend to monitor and audit its activities and projects that will be financed from the proceeds of Sukuk issuance to ensure their compliance with Islamic law.

With regard to the concerns raised by exposing Sukuk law of public assets to foreclosure or transfer of its title is the main objection of  Al-Azhar, the Minister affirmed that the amended Sukuk draft law stipulates in article 5  that.

 “It is prohibited to issue public owned fixed assets or its utilities against governmental Sukuk".

The said article also provides that Sukuk issuance is only against usufruct not nude ownership as for the state owned fixed assets.

Government, public authorities, local administration entities and other public legal entities may issue Sukuk against usufruct of state owned fixed assets without ownership.

The Minister said that such clear legal text removes these concerns completely, confirming that the main objective of governmental Sukuk issuance is to generate new state assets to increase community assets, whereas such revenues will be uses in establishing economic entities, that should be revert to state at the end of Sukuk maturity.

As for the Ministry of Finance new plans, the Minister declared that the PPP central unit is ready to offer investment projects, its anticipated investment cost exceeds 17 billion LE,  indicating that the Ministry of Finance received 45 requests from international companies to invest in  such projects, including establishment of Abo Rawash sanitation treatment plant, which has been ready offered few days ago with total  investment of 5.5 billion LE,   19 global companies request Tender Specifications in three days only . Starting to implement solid waste recycling projects and use it in electricity production in 3 governorates: Cairo, Giza and Alexandria. The  development project of technological region in Maadi to export telecommunication and technology services, a new smart village in Egypt, providing 10 thousands jobs during the project implementation and after operating its first stage. The region development investment is estimated at 368 million LE; in addition to the investments pumped by the companies operate in the region. The development and expansion project of the industrial Safaga port, allowing to export phosphate ores after conducting intermediate industrial processes, in addition to the establishment of  floating dock for ships maintenance and repair, wharfs development to receive grains and livestock. The project cost is estimated at 6 billion LE.

The Minister added that the projects also include the development of the Specialized Suez Canal University Hospital, costing 400 million LE, two water desalination plants in Hurghada, costing 900 million LE. and other projects.

The Minister said that among the ambitious projects is the PPP with the Ministry of Transport which include the establishment of 16 new river bus station besides the existing 15 to extend its services from Helwan to Al Qanater Al Khayriyyah which will serve 140 thousand passengers daily.

On the other hand, the Minister of Finance asked taxpayers to quickly provide their tax returns and pay the due taxes, and also asked parallel economy (non-formal) workers to pay to public treasury the due taxes and fees; noting that the current season of providing tax return is a new start with the state, the latter will not be late to take all measures to support them.

The Minister said that the state is keen to continue its support for successful projects such as governmental E-Payment, projects which achieved qualitative leap of public treasury payments besides revenues control. He pointed out that the Ministry seeks, during the next period, to expand the automation of all state general budget programs which contributes in increasing control and transparency of public expenditure. Automation methods ensure that any authority doesn't exceed its allocations earmarked in state’s general budget, the most important is to rapidly detect any deviation state’s general budget.

The Minister confirms that the Ministry of Finance seeks to complete other projects such as taxi replacement project which succeeded in replacing 41 thousand taxis. The project also contributes in improving its owner's income and their families significantly besides its social and environmental effects. He noted that the MoF decided to start applying for the project's third phase on 17 March 2013.

The Minister declared that custom revenues reached 9 billion and 35 million LE from 1/7/2012 to 17/1/2013, representing about 43.5% of total targeted 20.758 billion LE in current fiscal year, a growth rate 34% ( than the same period) of the previous fiscal year 2012/2011 .

He explained that, with the global trend to automate the traditional payment systems of government services, customs and tax authorities allow tax and customs duties payment through E-payment and collection system, which is linked to the Single Treasury Account through fully secured and encrypted electronic network, which contributes in developing customs work, reducing the time of goods release and streamlining the customs measures and other state resources.

He declared that the number of custom evasion cases and violations that were recorded in the first half of current fiscal year reached 1320 , with dues estimated at 726.3 million LE.

 The Minister mentioned that the customs authority will implement an examination scan project, to scan containers and parcels contents , fourth stage; an investment of $ 65 million.

The Minister concluded his statement by assuring that sustainable cooperation between the Ministry of Finance and all society is necessary, confirming he welcomes any ideas, initiatives and projects which contribute in achieving a qualitative leap in national economy and society.

"It is our goal and what we seek to achieve", The Minister added.