Reuters, Sunday June 21 2009

CAIRO, June 21 (Reuters) - The Finance Ministry said on Sunday it had signed an agreement with the state's National Bank of Egypt to collect taxes electronically, the ...

Reuters, Sunday June 21 2009   CAIRO, June 21 (Reuters) - The Finance Ministry said on Sunday it had signed an agreement with the state's National Bank of Egypt to collect taxes electronically, the latest move to improve efficiency and cut down on tax avoidance.   The cabinet of Prime Minister Ahmed Nazif swiftly cut tax rates after taking office in 2004 with the aim of improving collection. The policy was accompanied by a media campaign encouraging Egyptians to declare their tax dues.   The latest agreement will allow taxpayers to submit their filings at any National Bank of Egypt branch, which will then be filed directly to the Egyptian Tax Authority, the ministry was quoted by the official MENA news agency as saying.   Finance Minister Youssef Boutros-Ghali said the deal was part of moves to automate collection and boost efficiency, MENA said. The minister added that several other banks would be likely to join the scheme.   Angus Blair from Beltone Financial said the cabinet, as part of its moves to reform the economy, has been on a drive to improve and streamline the collection process.   "Until relatively recently there was probably significant tax avoidance and with the cut in tax rates it was then much easier to bring more companies and individuals into the reporting system," he said.   "Clearly as you are developing the government would want to institutionalise that process," he added. Some government salaries and pensions are now paid electronically, in a country where many transactions, including big deals such as house purchases, are conducted in cash.   Only roughly 10 percent of Egypt's 77 million people has a bank account. (Writing by Alastair Sharp; Editing by Rupert Winchester)