Egypt introduces tax incentives to boost trust, partnership with business community

Daily News Egypt

26-05-2025

Egypt's Minister of Finance, Ahmed Kouchouk, announced on Sunday new tax facilitations aimed at fostering greater trust and deeper partnership between the government and the business community, underscoring Egypt's ongoing commitment to economic reform.
Speaking at the US–Egypt Policy Leaders Forum 2025, organized by the American Chamber of Commerce under the leadership of Tarek Tawfik, Kouchouk emphasized that there is strong alignment across all pillars of Egypt's economic reform agenda. This coordination, he noted, is essential for enhancing the competitiveness of the Egyptian economy on a sustainable basis.
The minister stated that Egypt has begun to reap the benefits of structural reforms, with robust macroeconomic and financial performance indicators over the past ten months. 'The Egyptian economy is now positioned for gradual and sustained growth,' Kouchouk said, citing increasing investment as a key driver of this momentum.
A central priority for the government, he emphasized, is empowering the private sector. 'We are adopting policies that enable the private sector to take the lead in economic activity,' he said. As a result, the private sector's share of total investments rose to 60% between July and December 2024, a significant indicator of growing business confidence and engagement.
Kouchouk explained that the government is managing public finances with a careful balance between maintaining fiscal discipline and stimulating economic activity. He highlighted a series of targeted initiatives and programs designed to support key sectors including industry, agriculture, exports, and tourism, all aimed at enhancing Egypt's global economic competitiveness.
One of the most notable achievements this fiscal year, the minister revealed, is the recording of the highest primary surplus in Egypt's recent history—3.1% of GDP from July 2024 to April 2025. This surplus was achieved despite rising global interest rates and demonstrates Egypt's prudent fiscal management. He also noted a decline in the debt-to-GDP ratio, a key metric reflecting the country's improving financial health.
Looking ahead, Kouchouk affirmed that the government is committed to continuing this positive trajectory by further reducing debt levels and creating fiscal space to increase public investment in critical areas such as healthcare, education, and broader social and economic development.