Taxes revenues up from 55 % for the first quarter of the fiscal year compared to the same period last year. The amount of taxes revenues have reached in total EGP 88,6 billion according to the Vice Minister of Finance Amr El-Monayer.
Egypt taxes revenues up 55%
A rise in revenues from The Value-Added Tax (VAT) explains partly the situation, as a reminder Egyptian government has raised it from 13% to 14%. The VAT generated EGP 50,7 billion, state-owned agencies and companies generated EGP 16 billion, and Income taxes EGP 21,26 billion.
Income tax collections increased by 36%, but the biggest increase is coming from Oil sector’s VAT with a 520% compared to the last fiscal year. In addition to a tax increase, Egypt started a program of economic reforms to overcome its economic troubles. This includes local currency flotation, energy subsidy cuts. Indeed Egypt aims to narrow its budget deficit to 9,1% of GDP by the end of fiscal year 2017/2018, last year the deficit reached 10,9% of GDP.
In the report published in October 2017, The World Bank expected a decrease to 8,8% of GDP by 2017/2018 fiscal year. According to Egypt’s finance minister Amr al-Garhy “Egypt plans to renew a USD billion funding agreement with international banks, while it seeks credit alternative sources, such as the issuance of bonds”. The country plans to sell USD 4 billion, and EUR 1,5 billion in government bonds.
As a reminder Egyptian program was supported by the International Monetary Fund (IMF) and includes a USD 12 billion loans.
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