(MENAFN- Daily News Egypt) The Ministry of Finance announced that Egypt's tax revenues grew by 38.3%-a total of EGP 155.2bn-reaching EGP 560.7bn between July and October 2024. This marks the highest tax revenue increase in 20 years, compared to EGP 405.5bn during the same period last year.

In a report released today, the Ministry attributed this growth to the overall recovery of economic activity and the resolution of the foreign exchange crisis. The increase also reflects advancements in tax system automation and efforts to broaden the tax base.

The Ministry highlighted that tax revenues from sovereign entities grew by EGP 37.4bn, or 35.2%, totaling EGP 143.7bn, up from EGP 106.3bn. Tax receipts from non-sovereign entities rose by EGP 117.9bn, or 39.4%, reaching EGP 417.1bn, compared to EGP 299.2bn in the same period last year.

Key tax categories showed significant growth:

Income Tax: Tax revenues from income taxes increased by 7.7%, or EGP 10.1bn, reaching EGP 141.1bn. This rise was driven by a nearly EGP 6.7bn increase in local salary tax, which reached EGP 40.6bn. Additionally, revenue from taxes on commercial and industrial activities rose by EGP 2.8bn, totaling EGP 16.4bn, while taxes on non-commercial professions increased by 36.1% to EGP 2.4bn. Corporate tax revenue amounted to EGP 79.6bn.

Value-Added Tax (VAT): VAT revenue surged by 42.7%, or EGP 78bn, totaling EGP 261.2bn. VAT receipts from goods increased by 68.5% to EGP 154.5bn, while VAT from services rose by 22.2% to EGP 29.7bn.

Property Taxes: Revenues from property taxes increased by 68.1%, or EGP 48.2bn, reaching EGP 118.9bn.

Taxes on International Trade: Revenue from taxes on international trade grew by 90.3%, or EGP 18.8bn, totaling EGP 39.6bn.

Additionally, non-tax revenues increased by EGP 19bn, reaching a total of EGP 87.5bn.

The Ministry emphasized that it is working closely with revenue authorities to ensure tax stability and to build a balanced tax system that supports the business community and fosters investment to stimulate economic growth. The introduction of tax facilities marked a strong beginning to the partnership between the government and the business community, aimed at improving the investment climate, followed by several other reforms and procedural updates.

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