Egypt Daily News – President Abdel Fattah El-Sisi has directed the replacement of various fees collected by government bodies and agencies with a unified additional tax based on a percentage of net profit, according to a statement issued by the presidency on Sunday.
Currently, Egypt imposes a corporate income tax rate of 22.5% and, starting with the 2019 tax season, began collecting a solidarity contribution tax of 0.26% of companies’ total annual revenues as part of the Universal Health Insurance Law.
The Egyptian government plans to increase its targeted tax revenue from goods and services by 34.4% year-on-year, reaching 1.103 trillion Egyptian pounds in the fiscal year 2025–2026. This increase is driven by an expected 50.2% jump in value-added tax (VAT) revenue on both domestic and imported goods.
During a meeting with the Prime Minister and several economic ministers, President El-Sisi reviewed government efforts to improve the business environment and attract more local and foreign investment. The meeting included a discussion of the procedural burdens facing investors and a proposed plan to reduce them—such as unifying collection authorities and launching an economic entities platform.
Egypt, where taxes account for more than two-thirds of the state budget revenue, aims to collect around 2 trillion Egyptian pounds in taxes during the current fiscal year ending in June.
Tax revenues in Egypt rose by 38% year-on-year during the first half of the current fiscal year (2024/2025), reaching 913.4 billion pounds, according to a government official who spoke to “Asharq” earlier.
The replacement of various fees with a unified profit-based tax also comes as the Ministry of Finance plans to begin collecting taxes and fees from economic bodies and sovereign entities—including the New Urban Communities Authority—starting this fiscal year. This move is expected to generate “significant tax revenue.”
Accelerating Customs Clearance Fee Payments
Sunday’s statement also noted that the Egyptian government plans to allow payment of customs clearance fees beyond regular banking hours. The goal is to reduce the average customs clearance time from 8 to 6 days, with customs services continuing to operate on public holidays and Fridays.
The meeting also addressed a new export subsidy program aimed at supporting domestic industry and increasing Egyptian exports to global markets.
President El-Sisi emphasized the importance of granting the private sector a central role in driving economic growth and boosting exports by encouraging national investment in production and export, and by providing essential services to exporters.
