Egypt is poised for a significant increase in tax revenues for the 2024-25 fiscal year, starting July, driven by austerity measures mandated by the International Monetary Fund (IMF) and other international creditors in exchange for over USD 50 billion (EGP 2.3 trillion) in financial assistance. The draft budget for the 2024-25 fiscal year outlines a projected 32 percent rise in tax revenues, reaching EGP 2 trillion (USD 42 billion). This follows a 38 percent increase between the current fiscal year and the previous one, despite the income tax exemption threshold being raised to EGP 60,000 (USD 1,260.6). Key factors contributing to the revenue surge include a 32.4 percent increase in VAT revenues and a 31.6 percent rise in income tax revenues. Revenue from the Suez Canal is also expected to jump, as the depreciation of the Egyptian pound to over 47 to the US dollar inflates the value of dollar-denominated canal tolls in domestic currency, according to Chairman of the Suez Canal Authority (SCA), Osama Rabie. VAT revenue is set to nearly double over four years, from 339.7 billion pounds in 2020-21 to a projected 720 billion pounds in 2024-25….
Egypt Projects Sharp Increase in Tax Revenue Amid Austerity Measures
June 12, 2024
