Egypt tax revenue to GDP rises 1.6% amid fiscal reforms

Egyptian Finance Minister Ahmed Kouchouk announced that tax revenues as a percentage of GDP have increased by approximately 1.6% over the last two years. This growth occurred despite government efforts to reduce tax rates and ease burdens on taxpayers, rather than through increasing tax rates.

Kouchouk attributed the improvement to an expanded tax base, business-supportive reform measures, and increased taxpayer confidence and responsiveness to the tax system. He noted that fiscal discipline was achieved without cutting social spending; instead, spending on health, education, and social protection increased by more than 10% last year.

The government is currently implementing a second package of tax reforms, which includes adjustments to profit taxes, reduced tax burdens on the securities market, and incentives to encourage corporate investment. A key priority remains the transition to digital platforms to simplify procedures and improve service delivery for taxpayers.

During a celebration organized by e-finance and e-tax, Kouchouk emphasized that increasing voluntary compliance and providing integrated electronic services are central to the reform strategy. He expressed pride in the digital capabilities of local partners, noting the potential to export Egyptian expertise in financial and tax system mechanization to the region.