ETA To Launch Second Tax Facilitation Package For Public Consultation: Abdel Aal

(MENAFN- Daily News Egypt) Rasha Abdel Aal, Head of the Egyptian Tax Authority (ETA), announced that preparations are underway to launch the second phase of the tax facilitation initiative, which will soon be introduced for public consultation. The new package builds upon feedback received from various state institutions and private-sector companies following the success of the first phase.

Speaking at a meeting with representatives of the Chinese business community-organized in collaboration with the Egyptian-Chinese Businessmen Association-Abdel Aal highlighted the Ministry of Finance's commitment to continuous engagement with investors and the business community to enhance the investment climate and simplify tax procedures.

Abdel Aal noted that since 2018, the ETA has been undergoing a comprehensive digital transformation built on five main pillars, including digitalisation, employee capacity-building, and legislative reform. Among these reforms is the introduction of the Unified Tax Procedures Law. While digitalisation efforts have made significant strides, an internal assessment conducted last year revealed the need to deepen engagement with taxpayers, whom she described as key partners.

“Real reform starts by identifying the challenges facing investors and setting clear priorities,” Abdel Aal said.“This approach shaped the first tax facilitation package, which proved instrumental in building trust with the business community.”

She pointed to a key measure in the first package that allowed taxpayers to file or amend returns for the years 2020–2024 without incurring penalties. The initiative saw over 650,000 tax returns submitted, generating revenues of EGP 80 billion-a clear sign of improved voluntary compliance and growing trust in the system.

Abdel Aal clarified that there are currently no plans to introduce new legislation on waiving late fees. The existing framework, which caps penalties at 100% of the original tax due, strikes a fair balance and remains sufficient.

She emphasized that sustaining revenue growth depends not on increasing tax rates, but on policy stability and integrating the informal economy through digital platforms and risk-based monitoring systems. These tools, she said, allow for broader tax base expansion without overburdening investors.

During the meeting, Cao Huai, Managing Director of TEDA Egypt, praised the ongoing support from both the Egyptian and Chinese governments for projects in the TEDA economic zone. He described the session as an important forum for direct communication with the Tax Authority.

Omar Wang, Executive Vice President of the Egyptian-Chinese Businessmen Association, echoed this sentiment, noting the group's key role in supporting both Egyptian and Chinese companies. He highlighted the cooperation protocol signed earlier this year with the ETA to address challenges faced by Chinese businesses, in addition to a similar protocol with the Customs Authority in 2023.

Mohamed Alaa, Secretary General of the Egyptian Businessmen's Association, lauded the Finance Ministry's push to rebuild trust with the private sector. He pointed to the success of ETA's recent facilitation campaign,“A New Chapter,” as a signal of a fresh, cooperative approach. He also praised TEDA Egypt as a model for effective collaboration between government and international investors.

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