The head of the Customs Authority announced that the clearance of goods in Egyptian ports is returning to normal levels, with a focus on essential items.
At a conference of the Egyptian Tax Association in Alexandria, tax and customs leaders stressed that their priority is to boost investment, production, and exports, and that the only way to achieve economic development in these challenging global times that affect Egypt’s economy is through the cooperation of all national forces, including the government and the private sector.
They said: “We respond to investors’ demands without compromising the public treasury’s rights.”
Ramy Youssef, Assistant Minister of Finance for Tax Policies and Development, said that automated systems play a key role in standardizing tax procedures, which is a basic element of tax fairness and competitiveness. He also said that the system of unifying the criteria and rules of income tax, known as “payroll,” has already brought positive outcomes for citizens, prompting a review of the tax exemption threshold.
Youssef said: “We are committed to engaging with the private sector and exchanging ideas and suggestions about the tax system. This commitment comes from the national duty that calls for all of us to work together for the progress of the national economy and the movement of the production cycle.”
Rasha Abdel Aal, Acting Head of the Egyptian Tax Authority, confirmed that by June, all tax disputes in the files of businesses or companies with turnovers of less than 10 million pounds will be settled. She said that the authorities have started to handle these old and accumulated files using the simplified lump-sum tax system, as provided by the law for medium, small, and micro enterprises.
Abdel Aal said: “We aim to finish tax inspection procedures annually by expanding electronic systems and using artificial intelligence applications.” She highlighted that with the integration of electronic tax systems, arbitrary assessments are no longer valid, in line with the tax policies that support investment and encourage business growth and increase of production and exports.
Abdel Aal added: “We have a strong commitment at the Egyptian Tax Authority not to conduct field inspections unless the risk level rises.” She expressed her willingness to have an open dialogue with the private sector, listening to their proposals that help create an attractive and stimulating investment climate. She assured that she is ready to implement measures that ease the burden on both financiers and taxpayers, ensuring tax fairness, defining the tax base accurately, simplifying procedures, and protecting the rights of both investors and the state.
The head of the Customs Authority, Shahaat Ghatouri, affirmed the authority’s commitment to adjusting the customs tariff to stimulate investment and industrialization. He said that this is done in compliance with the international agreements, as shown by the low customs tax rates for production inputs, ranging from 2% to 5%, while the final product may face up to 60%, creating the optimal balance to enhance our production potential.
Ghatouri said: “We are eager to extend the use of the risk management system to speed up customs clearance, along with the best use of electronic systems to simplify customs procedures. This is in line with the creation of 21 logistics centres that are electronically linked to a unified platform.”
He noted that about 85% of customs ports have X-ray detection devices to expedite inspection procedures while ensuring national security and public health. In 2023, they successfully prevented customs evasion attempts worth EGP 8.5bn.
Ghatouri stressed: “We are working on developing a more advanced system, ‘Smart Valuation,’ to guarantee consistent customs treatment across different ports electronically. This is in accordance with the state’s efforts to lay the groundwork for tax and customs fairness.”
Ghatouri explained that the amount of goods in ports is nearing normal levels, with a focus on essential and strategic goods, medicines, petroleum products, and fuel. This helps to ease trade, encourage production, support the national industry, secure the state’s strategic reserve, and increase the availability of essential goods in local markets.
