Egypt’s cabinet reviewed a proposed package of tax facilities and reforms for the fiscal year (FY) 2026/27 on Tuesday, aimed at building new partnerships with the tax community and restoring trust through integrated incentives.

Finance Minister Ahmed Kouchouk presented the reforms during a cabinet meeting chaired by Prime Minister Mostafa Madbouly. Kouchouk stated that the philosophy behind the changes is to improve services and create a more transparent environment for taxpayers.

The proposed measures include a significant overhaul of the real estate tax system. Under the plan, procedures for filing declarations will be simplified, the exemption limit for a citizen’s primary residence will be increased, and tax write-offs will be permitted. The ministry also plans to launch an electronic application for filing real estate tax returns and willallow a specific period for taxpayers to settle arrears without incurring late payment penalties.

Kouchouk noted that the package includes the application of international tax standards and adjustments to customs tariffs. These adjustments are designed to support national industry, encourage investment, reduce smuggling, and decrease both the time and cost associated with customs clearance. Furthermore, the government intends to expand the electronic payroll tax system to include a larger number of private sector companies and implement specific reforms to the Value Added Tax (VAT) system.

The Finance Minister added that the government is working to expedite the approval and implementation of a second package of tax facilities.

The tax reform discussions took place alongside a broader review of the FY 2026/27 fiscal year budget estimates. Prime Minister Madbouly noted that these economic priorities follow directives from President Abdel Fattah al-Sisi, which also include a new social protection package to support low-income groups ahead of the month of Ramadan. This package, detailed in a recent press conference, also covers increases in state employee incomes.

Regarding energy security, Madbouly outlined a plan to ensure electricity supplies during the upcoming summer months. He said the government is working to meet the energy needs of production and service sectors to attract investment and maintain industrial output. The strategy focuses on modernising the grid to reduce technical and commercial losses, lowering fuel consumption, and expanding renewable energy projects to limit the use of fossil fuels.

In the aviation sector, the Prime Minister highlighted the recent addition of the first Airbus A350-900 to the national fleet, describing it as a step towards enhancing Egypt’s long-haul flight capabilities. He also referenced ongoing discussions with the International Finance Corporation (IFC) regarding the potential for private sector involvement in the management and operation of Egyptian airports.

The meeting further addressed infrastructure projects in Cairo, managed in coordination with the Engineering Authority of the Armed Forces, including urban planning and the status of building violation reconciliations. Madbouly concluded by offering congratulations to the Egyptian people for the upcoming month of Ramadan.

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