Egypt Considers Issuing Green, Islamic Bonds In Local Market For First Time: FM

The new strategy is to be introduced during the first quarter of the next fiscal year, the minister said at a symposium organised by the National Press Authority.

“We are working to diversify funding sources and attract local investors to reduce external borrowing and costs.

“We are also considering issuing green and Islamic bonds in the local market for the first time,” said Ahmed Kouchouk, Minister of Finance, at the event.

He said the Ministry’s plans were reviewed in alignment with the government’s broader objective to improve the quality of life for Egyptians.

Kouchouk highlighted the need for strengthening the partnership between the Egyptian Tax Authority and the business community, built on trust, certainty, and support, aimed at simplifying tax processes, improving services, and ensuring fairness in rights and obligations.

Pointing out that the first package of tax facilities, fully implemented this fiscal year, has been well-received by taxpayers, Kouchouk said the Ministry also launched the pilot operation of a central electronic clearing system to facilitate liquidity for investors by addressing government dues and debts.

The minister also said the old tax files prior to 2020 will be closed in a fair, simplified, and equitable manner, with the Egyptian Tax Authority working to correct certain administrative decisions to build taxpayer trust.

The Ministry is also relying on neutral institutions to evaluate and regularly review the progress of tax reforms, ensuring transparency through extensive media communication with all tax community segments.

For the first time, a new, simplified system will be implemented for start-ups, SMEs, entrepreneurial activities, and professionals with a business volume of up to EGP 15 million.

This system offers new incentives, exemptions, and facilitations across all tax categories, including income, value-added tax, stamp duties, and state resources development fees.

Notably, businesses joining the system will be exempt from capital gains taxes, dividends, stamp duty, registration and documentation fees, and will face no advance payments or discounts.

Additionally, Kouchouk announced a cap on late fees, ensuring that fees will not exceed the tax principal amount to prevent undue burdens on taxpayers due to delays in audits or disputes.

The Ministry will also encourage unregistered taxpayers to regularise their status before audits, providing them with an opportunity to submit or amend tax returns from 2020 to 2023 without penalties.

The minister said in the coming weeks, new packages of facilities will be introduced to tackle challenges in customs and real estate taxes.