Tax proceeds increased by 100.5% to record 291 billion EGP in 10 months.
48% increase in compliance with tax return filing in the present FY.
Names of the top 11 taxpaying companies over the filing cycle are disclosed.
Real estate tax proceeds soared by 100% to reach 1.9 billion EGP.
21% increase in custom proceeds despite import rationalization measures.
Minister of Finance, Mr. Amr Al-Ghary, paid a visit to the Large Taxpayer Center on the occasion of termination of the time cycle of filing tax returns of companies. He hailed efforts of the taxation body and thanked all employees for their dedication and for successfully achieving the entire targets of this FY taxation plan.
Attendees were Mr. Amr Almonyar, Vice Minister of Finance for Tax Policies, Mr. Emad Samy, Head of the Egyptian Tax Authority, Mr. Mohamed Abdel Sattar, Deputy Head of the Egyptian Tax Authority, and Mr. Abdel Azim Hussein, Head of the Large Taxpayer Center.
In a press conference held by the Minister during the visit, he announced that over the first ten months of the present FY, total tax proceeds amounted up to 291, 013 billion as compared to 225, 692 billion over the same period last year, thus recoding an increase by 135% from the estimated target proceeds of 289, 875 billion. Tax proceeds included taxes collected from sovereign entities (oil, treasury bonds, The Suez Canal and the CBE), he noted.
The number of tax returns filed by both individuals and companies over the current tax return cycle ending in the 30th of last April increased to 2, 720,137 million against 2,391, 230 million tax returns last year, resulting in a 48% surge in proceeds to reach 21,338 billion EGP against 15,223 billion last year, he added.
Mr. Al-Ghary has also disclosed the top 11 taxpaying companies this year: ranking first is the Arab Petroleum Pipelines Co. (SUMED), followed by Elsewedy PSP, Orascom Construction Industries Co. , Nestle Dairy Egypt, Samsung Electronics, MNHD, Telecom Egypt, UGDC, Johnson & Johnson Egypt, Al-Behaira Liquefied Natural Gas Co. and in the last rank H.S.B.C.
Moreover, he highlighted that income tax proceeds jumped by 27% to reach 94, 383 billion EGP in the 1st 10 months of the present FY against74, 145 billion over the same period of last year. Proceeds of VAT rose to 130,567 billion, thus achieving 99% of the estimated target proceeds of 132, 223 billion, where Large Taxpayer Center accounted for 67,525 billion thereof against 63, 042 billion last year.
The Minister noted that the achieved tax proceeds (including sovereign entities) over April solely registered the highest rates to reach 51,599 billion against 28,893 billion in April of the prior year; i.e., by a growth of 179% and by an increase of 106% over the estimated target proceeds of 48, 635 billion EGP.
On his part, Mr. Amr Almonayer, said that proceeds of real estate taxes in the present FY reached 1.9 billion EGP compared to 950 million EGP last year, pinpointing that the Ministry plans to record more proceeds over the coming period.
Mr. Almonyar remarked that custom tax proceeds also factored in tax achievements witnessed over the 1st10 months of the present FY. Despite all measures adopted to rationalize import activities, custom tax proceeds grew by 21% to reach 21.6 billion EGP against 17.5 billion EGP in the same comparable period of last year, which further stress efforts of all custom officials in this effect.
The Minister had also held a meeting with senior officials of the Tax Authority, Large Taxpayer Center and all its staff, in which he thanked all the employees for successfully achieving the target taxation plan. He pointed out that these achievements would in turn decrease budget deficit and curb inflation, and would ultimately be reflected positively when a fair ratio of tax proceeds to GDP is achieved.
He also confirmed his support to all techniques deemed helpful in upgrading work environment, namely by making advantage of technology & training as well as by convening cooperation protocols with entities that have information databases in order to compile an integrated database of the tax community to achieve better results.