Finance, Investment Ministers discuss industry, export policies with exporters
Updated 10/6/2025 12:46:00 PM
Arab Finance: Minister of Finance Ahmed Kouchouk and Minister of Investment and Foreign Trade Hassan El-Khatib held an open dialogue with exporters during a conference organized by the Engineering Industries Export Council to discuss the future of industry and engineering exports in light of Egypt’s fiscal policies, as per a statement.
The two ministers responded to participants’ questions, emphasizing coordination between their ministries and a shared approach to strengthening the competitiveness of the Egyptian economy and supporting the private sector’s role in growth and development.
Kouchouk said that the Egyptian private sector has shown flexibility and the ability to grow and compete locally and internationally, adding that the ministry is proud of the sector's strong performance and the 73% growth in private investment.
He also announced that the second package of tax incentives will be introduced at the end of the month and opened for public dialogue in November, explaining that the measures will focus on current tax partners and include steps to strengthen confidence and predictability in the tax system.
Kouchouk said that reforms are underway to ease tax burdens, improve service quality, and enhance support for taxpayers.
He noted that a central electronic platform will soon be launched to manage government receivables and debts owed to investors, aiming to improve liquidity.
The value-added tax (VAT) refund system is also being reengineered to simplify and speed up procedures, he added.
The minister revealed that they have already refunded around EGP 7 billion in VAT, three times more than in previous years.
Moreover, he mentioned that electronic integration between the tax and customs systems will be used to provide incentives for investors, alongside a new guide to clarify tax rules for exported services.
Kouchouk said that in the coming period, the focus will be on small and new exporters to help them grow and compete regionally and globally.
He added that tax revenues increased by 35% without new burdens after implementing the first package of tax concessions. Independent institutions have been contracted to assess the ongoing tax reform efforts.
He noted that, for the first time, a fully funded export burden reimbursement program worth EGP 45 billion has been introduced to support exporters.
The government has started paying 50% of exporters’ arrears in cash and settling the remainder through offsets with government debts to the Ministry of Finance, the Insurance Sector, and the Energy Sector.
Moreover, Kouchouk stated that the Ministry of Finance is working with the Ministry of Investment and Foreign Trade on several investment and trade-related issues, including adjusting the solidarity contribution to better reflect business needs.
He said the state budget will continue to cover the difference in contributions to comprehensive health insurance on behalf of businesses.
For his part, El-Khatib emphasized the importance of partnership with the private sector and creating a supportive investment climate.
He said the government is working to assist investors through monetary policies led by the Central Bank and fiscal policies under Egypt’s structural reform program.
He explained that coordination between the Ministry of Investment and Foreign Trade, the Ministry of Finance, and other agencies has helped resolve obstacles and reduce customs clearance times.
El-Khatib said improving competitiveness is key to advancing Egypt’s trade performance and that the new export burden refund program demonstrates the government’s support for exporters.
He added that efforts are ongoing to strengthen trade ties with African countries while expanding access to European and other markets.
El-Khatib noted that several companies in Egypt’s automotive sector are preparing to export, and the government supports initiatives to increase production and promote local manufacturing.
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