A developing country's informal sector, particularly in Egypt, should be enrolled in the taxing system to benefit from the sector in economic growth and to merge it with the formal sector, said Panos Tsakloglou, a professor at the Department of International and European Economic Studies at the Athens University of Economics and Business in Greece
Speaking to Ahram Online on the sidelines of “Towards an Economy for All” conference that the Alternative Policy Solution Research Project held at the American University in Cairo on Wednesday, Tsakloglou clarified that Egypt has to introduce incentives to encourage informal sector workers to pay taxes and to merge with the formal sector. The incentives should be set according to the country’s economic activities.
Investing in human capital
The cornerstone of Egypt's economy in the current phase, according to Tsakloglou's approach, is to upgrade and invest in human capital and to create an efficient capital market that leads to higher growth rates and solved all of the economy's problems.