Minister of Finance: 18.3% expected increase in tax revenues, and no prejudice to those most in need

Dr. Mohamed Maait, Minister of Finance, reviewed the estimates of public revenues targeted in the draft of the state’s general budget for the fiscal year 2021/2022, and with regard to public taxes, and said that the government is targeting in the draft budget for the fiscal year 2021/2022, the continued targeting of strengthening the link between public revenues and economic activity. It is commensurate with the underlying forces not yet exploited in the Egyptian economy, taking into account the foundations and principles of social justice and ensuring a fair distribution of tax burdens on citizens without prejudice to the poorest classes in society, and working to fortify the tax administration and make it more efficient and comprehensive.

 

This came during the Finance Minister's presentation of the financial statement on the draft state budget for the fiscal year 2021/2022, before the plenary session of the House of Representatives today, Sunday, headed by Counselor Dr. Hanafi Jabali.

 

Maait explained that it is expected that the tax revenue in the fiscal year 2022/2021 will witness an increase of 18.3% compared to the projected estimates for the higher year 2020/2021, and this mainly reflects the efforts to develop revenues and expand the tax base, in addition to the application of structural measures within the framework of Seasonal reform of the tax system in Egypt, and income taxes and value-added tax are considered public taxes, and it is intended that the income tax proceeds from non-sovereign entities (excluding the central bank, petroleum, the Suez Canal and taxes on bills and bonds) in 2021/2022 will grow by 19.1 In light of the continued improvement of economic activity indicators and the efforts made by the Tax Authority in developing performance, especially improving and raising the efficiency of the tax administration, and expanding the mechanization of all tax procedures and electronic collection, the proceeds from these agencies reached 297.1 billion pounds.

 

He continued: “With the continued efforts of the Ministry of Finance and the Egyptian Tax Authority to develop performance and increase the ability to properly generate additional revenues, and the gradual improvement in the performance of the Egyptian economy in the wake of the Corona pandemic, it is expected that the proceeds of value-added tax on all goods and services will grow in the fiscal year 2021 / 2022, a rate of 17.2% from the projected estimates for the previous high year 2020/2021, bringing the outcome to 449.6 billion pounds.