Minister of Finance Dr. Youssef Boutros Ghali has announced that the second tax collection term in the wake of tax reform has ended successfully.

At a press conference, Minister Ghali said that the number of taxpayers who have committed to pay their taxes for the fiscal year 2006/2007 has risen to 3 million taxpayers compared to 2.4 million in the last season; a 40.4 % increase.

Ghali added that the tax collection has registered a notable increase to a record 7.4 billion pounds compared to 4.4 billion pounds last year which is a 66.6% increase.

Ghali said indicators in Upper Egypt and Menoufia have both registered highest rates of commitment brining the governorate of Sohag at the top notch  on the scale of the number of taxpayers, followed by Aswan at 75.4%, Menoufia at 72.9%, Menya, Gharbiya and Damietta followed.  Ghali noted that the governorates of Giza, Cairo, Dakahlia and Alexandria were the least committed.

Minister Ghali also said that the large taxpayers’ center came in first among the districts with highest tax collection, registering an average of 3.7 billion pounds, followed by shareholding companies tax district in Cairo at 600 million pound and Alexandria shareholders’ tax district at 54 million.

Ghali concluded that the figures indicate that Egypt is  among the developing nations that have upgraded their tax departments and commended by the World Bank.

Ghali explained that the registered taxpayers have increased in the second season in the wake of the tax reform due to the great effort by the tax officers throughout the country and the successful experiment with regards to bracketing the tax community; as well as the steps taken to change the perception of the tax department as a taxation idea and upgrading the logistics in relation to building service offices, the setting up of joint committees of specialists,  organizing a number of conferences and motivation through bonuses.

Ghali vowed to continue to improve the standard of living among employees and to offer a better working environment.

Ghali also reiterated that the increase in the tax collection will be used in basic services in education and health and upgrading living standards among low bracket citizens in addition to cutting budget deficit without upsetting social expenses.  He emphasized the importance of boosting cooperation with unions to encourage voluntary payment.  He underlined that the commitment has been reflected in the growing number of traders who have voluntarily submitted their tax returns to the Alexandria chamber reaching 46,000 in service centers with a record tax base collection of 97 million pounds.  The tax collection in the local council in Alexandria has received 10,000 taxpayers who have paid 22 million pounds despite that the experiment is still in its initial steps.

(source : Ministry of Finance)