Ahmed Kouchouk, the Minister of Finance, emphasized that financial and economic reform is an ongoing and sustainable process. “This process extends beyond our reform programmes supported by international institutions,” he said.
“We have achieved positive results in terms of financial performance in the first quarter of the current fiscal year, which enhances economic stability,” Kouchouk added. He noted that the state has safe reserves of basic commodities. “We have the room, diversity and flexibility needed to manage the budget’s financing needs, and we always seek to diversify tools and markets,” he stated.
In response to questions from business community representatives in a panel discussion organized by “N Gage” and “LYNX” consulting services, the Minister revealed that 10 institutional reforms related to financial policy were implemented, aiming to make Egypt more capable of managing risks and increasing the competitiveness of its economy. A binding limit has been established for the total public investments of the state, which can make more room for the private sector. Additionally, for the first time, a “medium-term budget framework” will be set as of next year; to set targets and priorities for three years.
Kouchouk pointed out that the Ministry is working with the Ministry of Investment to unify the bodies that handle investor requests, as well as debt collection bodies, taking into account the reduction of burdens as much as possible.
He stressed that the priorities of financial policies focus on pushing economic and social development efforts to ease the burdens on citizens and the business community. They also include creating a tax policy and administration that stimulates investment based on a real partnership with financiers, targeting support for the economy with policies that have a greater impact on productive and export activities, and providing more space for spending on social protection and human development.
“We are working to benefit from big data in automated tax systems in managing risks and improving tax services for taxpayers. The first package of tax facilities will be fully implemented this fiscal year, taking into account the speed of VAT refunds, and the increase in the number of beneficiaries, “said the Minister. He added, “We want to expand the tax base by reducing the cost and encourage voluntary registration by building bridges of trust and partnership.”
An integrated and stimulating tax system for small projects, start-ups and entrepreneurship will also be introduced. Moreover, the sample inspection of all taxpayers will be expanded with sound risk management.
Yasser Sobhi, Deputy Minister for Financial Policies, stressed that achieving financial stability is essential for the growth of the private sector. He stressed the Ministry’s commitment to applying global practices in managing the state’s public finances and recording targets. He noted that several top-priority initiatives are launched to stimulate industry, exports, clean energy production, and technology localization, including the transition to more efficient energy, a strategy for manufacturing cars, and incentives to expand hotel rooms.
