Ahmed Kouchouk, Minister of Finance, affirmed that the launch of the second package of tax incentives for public dialogue comes as a continuation of the tax reform path and builds on the positive outcomes achieved through the first package, with the aim of strengthening trust between the Tax Authority and taxpayers, ensuring policy stability, and improving the investment climate.

 

The remarks were made during the conference organized by the Egyptian Tax Association to launch the second package of tax incentives for public dialogue, attended by Dr. Ahmed Shawky, Chairman of the Board of the Egyptian Tax Association; Ms. Rasha Abdel Aal, Head of the Egyptian Tax Authority; Mr. Sherif El-Kilany, Deputy Minister of Finance for Tax Policies; and Mr. Yasser Maharem, Secretary-General of the Egyptian Tax Association, along with a number of leaders and experts from the tax community.

 

The Minister noted that the government is focusing in the coming phase on further developing the tax strategy and striking a balance between safeguarding the state’s revenues and easing the burden on the business community.

 

He stressed the importance of public dialogue as a key pillar for reaching practical and implementable solutions that serve all stakeholders, emphasizing the need to link incentives to clear and measurable performance indicators in order to ensure tangible results and maximize the impact of tax reforms.

 

He added that the Ministry of Finance is serious about establishing a clear and ongoing mechanism to monitor the implementation of tax incentive packages.

 

In this context, a dedicated task force has been formed with full authority to move swiftly and address challenges as they arise, ensuring rapid response and effective execution.

 

The Minister underscored that the Egyptian Tax Authority is leading the tax reform process and is not merely an implementing body.

 

He stated that the Ministry stands firmly behind the Tax Authority, while the Authority itself is at the forefront of reform efforts and fully capable of delivering results, highlighting that empowering the Authority and supporting its workforce is essential for achieving sustainable and meaningful tax reform.

 

For his part, Sherif Kilany, Deputy Minister of Finance for Tax Policies, stated that the Ministry aims in the coming period to build on the results of the first package, with a strong focus on developing the tax strategy and addressing the real challenges facing the business community through direct dialogue and engagement.

 

He highlighted the pivotal role of the Tax Authority in supporting reform efforts and improving the quality of services provided to taxpayers, which contributes to enhancing voluntary compliance and increasing the efficiency of the tax system.

 

In turn, Ms. Rasha Abdel Aal, Head of the Egyptian Tax Authority, emphasized the Authority’s commitment to continuous engagement with the tax community and to listening carefully to feedback related to ongoing tax reforms.

 

She noted that receiving input from the business community and the Egyptian Tax Association is a fundamental component in refining policies and improving implementation mechanisms.

 

She explained that the second package of tax incentives adopts a centralized system approach aimed at addressing several key files, most notably the settlement of inactive companies, in order to streamline the tax base and avoid maintaining companies with no actual economic activity.

 

She added that the upcoming phase will witness the launch of an integrated electronic platform for public dialogue, bringing together relevant stakeholders and providing access to laws and guidelines, thereby enhancing transparency and facilitating access to information.

 

She further noted that taxpayers will be classified based on risk levels, with low-risk taxpayers benefiting from simplified procedures, supporting voluntary compliance and reducing administrative burdens.

 

Ms. Abdel Aal also announced the extension of the grace period for applying tax on machinery and equipment for four years, in support of the industrial sector, stressing that the new package includes additional measures that build on the achievements of the first package and pave the way for broader and more effective implementation of the second package.