Egypt to launch second phase of tax facilitation package by end of September

CAIRO - 6 October 2025: Egypt’s Ministry of Finance will launch the second phase of its tax facilitation package by the end of this month, with public consultations planned for October, Minister of Finance Ahmed Kouchouk announced, according to an official statement.

 

Kouchouk emphasized the strong performance of Egypt’s private sector, describing it as “resilient, dynamic, and capable of competing locally and internationally.” He noted that private investment grew by 73 percent last year, reflecting strong confidence in the country’s economic and fiscal outcomes.

 

As part of efforts to ease liquidity pressures and streamline tax procedures, the Ministry will soon roll out a centralized electronic platform to reconcile government dues and receivables for investors. It will also overhaul the value-added tax (VAT) refund system to speed up processing, after having paid out around LE 7 billion in VAT refunds, three times the annual average of previous years.

 

The Minister added that integration between the tax and customs systems will enable new incentives for investors, alongside the release of a simplified guide for tax treatment of exported services to support the competitiveness of Egypt’s service exports.

 

Kouchouk highlighted that the Ministry aims to fully activate the simplified tax system to encourage small taxpayers and entrepreneurs in various economic activities.

 

He also stressed that the next phase will prioritize supporting small and new exporters to strengthen their capacity for growth, profitability, and competitiveness regionally and globally.

 

In a significant move, the government has, for the first time, fully financed the export subsidy repayment program with LE 45 billion from the state budget to stimulate exports, allowing for a flexible budget this year to accommodate proposals from the export community.

 

The Ministry has already started disbursing 50 percent of exporters’ arrears in cash and settling the remaining half through offsetting mechanisms with outstanding dues to the Ministries of Finance, Social Insurance, and the Energy Sector.

 

Kouchouk noted that the first phase of the tax facilitation package, launched in June, led to the submission of 110,000 settlement files for previous disputes, 450,000 amended or new tax returns, and over 53,000 applications under the simplified accounting mechanism. These measures, he said, contributed to a 36 percent increase in tax revenues during the first 11 months of the last fiscal year.