Minister of Finance Mohamed Maait has assured the enterprise group in Egypt that the federal government has no intention to impose new taxes on financial actions.
Maait’s remarks got here throughout his participation within the Egyptian Society for Taxation convention, which was held beneath the title, “Funding and International Financial Repercussions, and their Influence on the Future Imaginative and prescient of the Tax System”.
Maait mentioned: “We’re eager on stabilizing tax insurance policies, regardless of the cruel world financial challenges, as the implications of the Coronavirus pandemic are intertwined with the detrimental results of the Ukraine struggle, whereas rising economies’ entry to worldwide markets has change into harder in mild of the uncertainty associated to the struggle.”
He added that in the course of the subsequent few years, an everyday convention will likely be held with the enterprise group divs to announce the state’s tax coverage over the following 5 years.
Maait affirmed the Finance Ministry’s dedication to the tax path that stimulates native and overseas investments. to maneuver the economic system in a sustainable method; in a means that contributes to reaching excessive development charges, that are mirrored in laying the foundations for complete and sustainable growth, bettering the lives of residents and elevating the extent of providers supplied to them, and lengthening the social safety community whereas focusing on the neediest and most cared teams, explaining that we’re persevering with to scale back the burden on productive actions; for industrial growth and export promotion, with emphasis on precedence sectors; to realize growth and financial targets and supply job alternatives, some legislative amendments have been remodeled the previous years to approve extra tax facilitations for the commercial and productive group.
He mentioned that there isn’t a intention to impose new taxes on financial actions, and there’s no prejudice to the industrial and industrial earnings tax fee, stating that, in implementation of the presidential directives, a draft legislation is presently being ready to finish all of the outdated accrued tax recordsdata, primarily based in essence on the philosophy of the Small, Medium and Micro Enterprise Growth Regulation, which covers 60% of the outdated circumstances, and there may be one other situation for the tax therapy of the remaining 40%.
He added that we don’t wish to enter into tax disputes with the enterprise group, and we lengthen our hand to everybody who needs to reconcile in tax recordsdata.
He identified that digital transformation will stay a basic pillar within the path of the Egyptian state. To make sure a extra developed tax system corresponding to world methods, primarily based on a better function for synthetic intelligence in elevating the effectivity of tax assortment, and facilitating taxpayers, by simplifying, standardizing and mechanizing procedures, particularly since digital methods contributed to growing tax revenues in the course of the first half of the present monetary world at a development fee Semi-annual approaching 20%, stating that the combination of the “digital invoice” system with the “digital receipt” system contributes to integrating the casual economic system, reaching tax justice, after which maximizing the state’s public revenues, making a monetary area to help social growth, and mitigate the severity of the wave. world inflationary influence on the poorest residents.
Maait additionally confirmed that there are 260,000 corporations which have joined the digital bill system, and the month-to-month common of digital invoices despatched has reached 35 million automated paperwork, stressing that it’ll not be allowed to cope with any official authorities within the nation, or refund the tax or perform import or export except for these registered with the digital invoice.
He defined that the legislative construction of the tax system has been developed; in a means that gives authorized cowl for modernization, mechanization and re-engineering of procedures in a means that provides them legislative authority, bearing in mind the imaginative and prescient of the enterprise group in every laws earlier than referring it to the Council of Ministers after which the Home of Representatives, by adopting the prior group dialogue methodology; as a way to obtain the nationwide curiosity, stressing that the Unified Tax Procedures Regulation established a legislative framework that codifies the unified mechanized tax procedures, which have been simplified, merged and digitized, to standardize the procedures for linking and gathering revenue tax, stamp tax, and value-added tax, in a means that contributes to the provision of providers for taxpayers lectronically with out the necessity to go to official places of work, by going to the Egyptian Tax Authority’s digital portal with the unified tax registration quantity for every of them, which incorporates all kinds of taxes topic to it, and making funds electronically utilizing one of many non-cash cost strategies.
He mentioned that the brand new digital system for getting ready and managing the salaries and entitlements of employees, which was utilized to 87% of state businesses, with numerous legal guidelines regulating their work; contributes to the standardization and automation of the principles, requirements and procedures for calculating the revenue and insurance coverage tax month-to-month by means of the “payroll” system in a means that helps guarantee equity amongst all workers, truthful competitors between corporations in estimating their bills, reaching the specified targets of strengthening the governance of the state’s monetary system, laying the foundations for transparency, maximizing monetary inclusion efforts, and gathering dues from the general public treasury.
He indicated that we intention within the fiscal 12 months 2023/2024, regardless of the unprecedented world financial challenges, to document a development fee of 5.5% of GDP, to realize a sustainable main surplus of about 2% on common, and to place deficit and debt charges on a downward path, pointing to We intention to scale back the funds deficit to five% ranges within the medium time period, with a goal for the federal government indebtedness fee to say no to lower than 80% of GDP by the top of 2027.
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