Competitive Neutrality Law boosts tax revenues, private sector trust

Speaking at a press conference following the cabinet’s weekly meeting, Kouchouk said the law has fostered “a culture of equal opportunity” across economic activities, while removing tax distortions created by the preferential treatment of state-owned entities.

“The law has laid the foundation for a trust-based partnership with the private sector,” he said, adding that it supports Egypt’s broader goals of inclusive growth and job creation for youth.

Competitive neutrality is the principle that government-owned or controlled entities should not enjoy advantages over private companies in the marketplace. 

Its implementation ensures that all businesses, whether publicly or privately owned, operate on a level playing field, with no unfair financial, regulatory, or operational advantages provided to government-owned entities.

Kouchouk revealed that eliminating tax exemptions for state-owned firms generated EGP 67.4 billion ($1.4 billion) in preliminary tax revenues in 2024.

Sovereign-affiliated companies accounted for EGP 16.4 billion, while 134 government entities were liable for EGP 9 billion.

Newly registered entities with the Tax Authority have added another EGP 4.1 billion.