Economy shows significant improvement in first 8Ms of FY2024
Minister of Finance Ahmed Kouchouk announced that the country’s economy has shown significant improvement, with financial performance indicators for the first eight months of the fiscal year 2024/2025 described as “very good.”
At the annual EFG Hermes conference in Dubai, Kouchouk emphasized that the Egyptian government is focused on reforming its financial policies to better support private sector growth and overall economic stability.
He explained that these changes are aimed at creating a more robust environment for business while ensuring long-term economic resilience.
Looking ahead, the finance minister highlighted that the new budget for fiscal year 2025/2026 will focus on stimulating economic activity. The budget is set to allocate significant funding toward initiatives designed to enhance production and export capacities. These efforts are expected to align with Egypt’s broader strategy of fostering inclusive and sustainable economic growth.
One key area of focus is Egypt’s tax system, which Kouchouk stated is undergoing a complete overhaul. The government is introducing a new approach to taxation that fosters trust, partnership, and support for the business community.
A primary objective is to expand the tax base by encouraging voluntary compliance, which will provide additional financial resources to support taxpayers.
Kouchouk also addressed efforts to reduce the tax burden for both individuals and businesses. New targeted incentive packages are being developed to provide support to startups, small businesses, and professionals.
Additionally, the government is working to streamline the resolution of tax disputes and simplify tax processes. For example, new measures have been introduced to cap penalty fees and additional taxes, ensuring that they do not exceed the original tax owed.
A centralized settlement mechanism for investors has also been put in place, alongside improvements to the VAT refund process.
Kouchouk reiterated that the government is pursuing a comprehensive strategy to reduce debt burdens, enabling increased investment in human development and social protection for Egypt’s most vulnerable groups.