The country’s reforms, which begun in 2016, buoyed the economy through the pandemic, supply chain disruptions, and the rise in shipping costs
Despite the pandemic’s challenges, Egypt’s economic reforms have supported the economy in achieving its targets for FY 2021/2022, with Egypt’s GDP expected to hit EGP 7.1 trillion in the current fiscal year said Finance Minister Mohamed Maait.
Egypt’s real GDP growth recorded an initial 7.7% in the 2nd quarter of 2021, reflecting a strong positive base effect states the Central Bank of Egypt’s (CBE) recent Monetary Policy Report.
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Currently, the Egyptian government is aiming to see achieve economic growth of 5.6%, a primary surplus of 1.5%, and an overall budget deficit of 6.7% of the gross domestic product (GDP) in fiscal year (FY) 2021/2022, Maait revealed while speaking to the National Press Authority.
The country’s reforms, which begun in 2016, buoyed the economy through the pandemic, supply chain disruptions, and the rise in shipping costs, the minister explained.
“The government is keen on stabilizing tax policies and has no intention to impose new taxes or increase the tax burdens on citizens in the future. The ministry has adopted a comprehensive strategy to upgrade the taxation and customs systems, through which the government can maximize the state’s budget revenues,” Maait explained.
Recent tax digitization projects have contributed to enhancing tax justice and increasing tax revenues by 15% in FY2020/2021 despite the pandemic’s effects.
“Egypt has also managed to introduce a pioneer model by applying the e-invoice system that has attracted, so far, about 5,000 companies and uncovered about 3,000 tax evasion cases,” the minister added.
Maait highlighted Egypt as one of the top countries in reducing the debt-to-GDP ratio, slashing it by 20% during the three years prior to the pandemic.
In a statement yesterday, Maait stated that Egypt will have a “fresh economic face” by the end of FY2021/2022, as ongoing projects towards modernizing and automating the tax and custom systems are set to be completed by that time with AI technologies integrated in government operations.
