Egypt’s president directs transition from multiple fees to unified tax on net profits

President Abdel Fattah El-Sisi has reviewed the procedural burdens faced by investors, directing the replacement of various fees charged by different state’s agencies with a unified additional tax on net profits.

In a meeting with Prime Minister Mostafa Madbouly and other pertinent state officials on Sunday, Sisi ordered fostering a more competitive investment climate.

The president underlined the need to ensure that investors experience tangible and swift improvements in the ease of doing business in Egypt through simplified procedures and reduced financial burdens.

The meeting, attended by the prime minister’s deputy for industrial development besides the ministers of finance and investment, focused on the government's efforts to create a business-friendly environment and attract more local and foreign investments.

Discussions included the procedural burdens faced by investors and a proposed plan to alleviate these burdens, such as unifying collection agencies and launching an economic entities platform.

Reducing Customs Clearance Duration

The meeting also addressed efforts to reduce customs clearance times, aiming to decrease the number of days required from eight to six.

Customs services will continue to operate on official holidays and Fridays, with the option to pay fees after banking hours, according to the state’s plan.

Boosting Exports, Asset’s Returns

The discussions also covered the export rebate program, which aims to support national industry and increase Egyptian exports to global markets, with a focus on meeting state targets for export growth by 2030.

Sisi and the ministers reviewed the efforts of The Sovereign Fund of Egypt (TSFE) to maximize returns from state-owned assets.

Empowering Private Sector

The meeting highlighted efforts made under Egypt's Initial Public Offering (IPO) program, in line with the State Ownership Policy Document. Such initiatives aim to enhance returns on state-owned assets through extensive partnerships with the private sector.

The president underscored the need to give the private sector a central role in driving economic growth and increasing exports. To achieve this, Sisi directed encouraging national investments in production and export, while providing necessary services for exporters.