Egypt Allocates EGP 28bn to Boost Export Support in FY2025/26, a 55% Increase: Finance Minister
Egypt has earmarked EGP 28 billion for export support in the fiscal year 2025/26, marking a significant 55% increase from the previous year. This initiative is part of the government’s broader strategy to enhance production, exports, and private sector investment, as stated by Minister of Finance Ahmed Kouchouk.
Government’s Fiscal Strategy
During the inaugural meeting of the joint committee between the Ministry of Finance and the Egyptian Exporters Association – Expolink (EEA), Kouchouk emphasized that the government’s fiscal policy is aimed at fostering investment through robust support for production and exports. He noted that the state budget is aligned with the government’s priorities of stimulating economic growth, enhancing competitiveness, and ensuring fiscal stability.
Kouchouk highlighted the collaborative efforts of the economic team to cultivate a more attractive business environment for the private sector. This involves ongoing cooperation among various ministries and relevant authorities to integrate economic priorities into government programs and initiatives.
Commitment to Structural Reforms
The minister reiterated the government’s dedication to pursuing structural reforms that aim to yield tangible improvements in economic performance and living standards. He pointed out that the business community has responded favorably to the government’s tax facilitation initiative, which resulted in a 28% increase in tax revenues during the previous fiscal year without imposing new tax burdens. This increase reflects enhanced economic activity and improved compliance among taxpayers.
Kouchouk also stressed the importance of maintaining direct communication with exporters and investors to address any challenges they encounter. He expressed optimism that ongoing policy reforms would yield significant benefits for the business community.
Tax Facilitation Measures
Rasha Abdel Aal, Head of the Egyptian Tax Authority, announced that the second package of tax facilitation measures aims to strengthen trust with taxpayers by introducing additional incentives and simplifying tax procedures. This package includes a variety of practical solutions to tackle tax-related challenges and improve the overall tax environment.
Abdel Aal indicated that the authority is prepared to implement these measures as soon as the necessary legislation is passed. Several facilitation measures have already been introduced without requiring legislative changes. She also mentioned that the law governing the settlement of tax disputes has been extended until the end of December. Additionally, solidarity contribution payments will now be deductible from the tax base, alleviating financial burdens on taxpayers. The suspension period for value-added tax on machinery, equipment used in industrial production, and medical devices has also been extended from two years to four years.
Customs Procedures and Export Payments
Ahmed Amway, Head of the Egyptian Customs Authority, reported ongoing efforts to simplify customs procedures and reduce average clearance times. An advanced risk management system has been implemented to facilitate advance customs clearance, prioritizing companies participating in the Authorised Economic Operator (AEO) program. Under this new system, shipments assigned to the yellow inspection channel will undergo only documentary checks, while those in the green and blue channels will be subject solely to X-ray inspections.
Nevine Mansour, Adviser to the Minister of Finance for Economic Institutions Relations, revealed that the government has disbursed EGP 70 billion to exporters over the past six years, including EGP 12.6 billion in the last fiscal year. She stated that the government aims to clear all outstanding export subsidy arrears within the next two years, demonstrating its commitment to bolstering exports and enhancing their competitiveness in both regional and international markets.
Challenges and Opportunities for Exporters
Mohamed Kassem, Chairperson of the Egyptian Exporters Association, outlined the primary challenges facing Egyptian exporters and welcomed the government’s tax and customs reforms. He noted that these reforms would enhance the competitiveness of Egyptian products and support export growth. Kassem described exports as the true engine of economic development, emphasizing their role in expanding production, attracting investment, generating foreign currency earnings, and opening new markets for Egyptian goods. He added that strengthening export capacity would contribute to comprehensive economic development, job creation, and improved living standards.
Samir Aref, Deputy Chairperson of the EEA, underscored the importance of promoting corporate mergers through supportive policies that simplify procedures, expedite approvals, and eliminate regulatory obstacles. He stated that such measures would ensure the sustainability of merged companies, bolster their competitiveness in domestic and international markets, and enhance their contribution to Egypt’s economic growth.
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Published on 2026-07-15 08:41:00 • By the Editorial Desk
