Dr. Mohamed Maait, Minister of Finance, affirmed that we are all partners in the national responsibility, we think and move together to build and develop our country, and to restore the leadership it deserves in various fields, and that there is a presidential mandate not to be alone in any decision related to the future of Egypt and to commit to promoting community participation, and in light of that a number of From the community dialogue sessions, on the objectives of the state’s general budget project; As a reflection of the state’s thinking and strategy, explaining that we are keen to achieve public financial discipline and implement the state’s strategic objectives, in a way that contributes to meeting the development needs of citizens and sustaining financial and economic performance indicators.
Read also.. Details of the Minister of Finance’s dialogue with the commercial and industrial community about the new budget
The minister said that we adopt all the proposals that we receive during societal dialogues on the state’s general budget, including: studying the establishment of a specialized authority to stimulate exports, approving tax and non-tax incentives to encourage the private sector to establish and manage vocational training centers that support the industry, and others.
The minister added, in an open dialogue with representatives of the Egyptian Businessmen Association and the Egyptian Youth Business Association, in the presence of Dr. Ihab Abu Eish, Deputy Minister for the Public Treasury, and assistant ministers Amjad Mounir, Dr. Mona Nasser and Mohamed Abdel Fattah, as part of a series of community dialogue meetings adopted by the Ministry of Finance on the objectives of the budget project. For the new fiscal year, we aim to achieve a balance between financial discipline and economic growth, in a way that contributes to providing goods and services, meeting the aspirations of citizens, and creating one million jobs annually, by making more room for the private sector; To enable it to play its role in achieving comprehensive and sustainable development; Which leads to maximizing its contributions to economic activity.
The minister pointed out that “our economy is growing and growing. It was necessary to spend all these billions on development projects despite global economic challenges; To improve the standard of living and improve the services provided to citizens; In order to provide more job opportunities, and for people’s homes to be open, he explained that the new budget will witness an increase in spending on health and education; As the main pillar of human development, in addition to the expansion of development investments.
The minister explained that Egypt’s future is in agriculture and industry, deepening domestic production and exports, and limiting imports, saying: “We must manufacture and grow our needs so that we do not import inflation from abroad,” pointing out that we are serious about supporting the national industry, and that there will be decisions that meet the aspirations of manufacturers in the future. Regarding real estate taxes on factories before the end of next June, and in response to the business community and to stimulate the export sector, the cash payment initiative for export shipments has been launched as of July 1, 2021, with a discount rate of 8% acceleration payment instead of the applicable rate of 15% on shipments Until June 30, 2021.
The minister added that the new amendments recently issued to some provisions of the value-added tax law and the stamp tax law ease the burdens on the industry, as they included the adoption of new tax exemptions and many of them: exempting medicines and active substances in production, blood and its derivatives and vaccines, and suspending the tax payment on machines. Imported equipment and equipment for use in industrial production for a period of one year from the date of release, dropping them immediately after production begins, exempting fodder to encourage investment in the poultry and fish industry, and not charging value tax for goods or services imported for economic zone projects of a special nature
additives, and other things that contribute to stimulating the national industry.
The Minister affirmed that we have succeeded in reducing the total budget deficit by 50% during the past five years, and we aim to reach 6.7% in next June, compared to 7.4% last June, and we target less than 6% for the next fiscal year, explaining that we are targeting A growth rate of 5.7% of GDP during the fiscal year 2022/2023, achieving a primary surplus of 1.5%, reducing the total deficit to 6.1% in the fiscal year 2022/2023, and bringing the debt-to-GDP ratio down to less than 90% In the fiscal year 2022/2023, reducing the debt service ratio to the total budget expenditures to less than 30% compared to a target of 31.5% during the fiscal year 2021/2022, and extending the debt life to approach 5 years in the medium term instead of 3.4 years currently.
The minister indicated that we are continuing the incentive policies, by being open to achieving all strategic goals to achieve the national interest, pointing out that by the end of next June, all projects for developing and mechanizing the tax system will be completed, in a way that contributes to expanding the tax base and limiting the tax community. more precisely; In order to integrate the informal economy into the formal economy, we aim before the end of next December to finalize all pending tax disputes, saying: “We want to collect treasury dues only; In order not to harm the country by forcing business owners to close, Egypt does not need to raise the tax rate, but rather integrate the informal economy only.”
The minister explained that the government is keen to provide the necessary funding to implement agricultural development projects. In order to advance this strategic sector, the interest in which has increased locally and globally after the “Corona” pandemic, to protect food security, provide strategic goods, strive to achieve self-sufficiency, maintain price stability in markets, and support the state’s capabilities in the face of population increase by working to increase the agricultural area, pointing to the 3 billion pounds have been allocated for a project to convert flood irrigation to drip irrigation in some governorates to increase the productivity of agricultural lands.
The minister indicated that the government is currently studying a new package of measures and initiatives that are compatible with the objectives of combating climate change, and it is scheduled to be announced before the end of next June, and we look forward to the participation of the business community with serious proposals in this regard, pointing to the importance of the presidential initiative to replace obsolete vehicles. With new ones running on natural gas, it is targeted during the coming period to approve a stimulus package to localize the electric car industry in Egypt.
Engineer Ali Issa, head of the Egyptian Businessmen Association, said that the initiatives adopted by the Ministry of Finance contribute to stimulating investment, deepening domestic production, and encouraging exports. In a way that helps enhance the competitiveness of Egyptian products in global markets, explaining that what is being studied regarding real estate taxes on factories, leads to easing
Burdens on the industrial community, and then reduce the cost of local manufacturing.
He expressed his appreciation to Dr. Mohamed Maait, Minister of Finance, for his adoption of the societal dialogue methodology, in a manner that confirms the national partnership in the process of building, development and reconstruction. He appreciated the series of community dialogues conducted by the Minister of Finance, on the objectives of the state’s general budget project; This contributes to agreeing on some effective initiatives that achieve the strategic goals of the state, including: Reaching the volume of Egyptian exports to $100 billion annually. Initiatives to pay back export burdens have contributed to an increase in the volume of exports by 27% for the first time this year.
Eng. Majd Al-Manzalawi, member of the Board of Directors of the Egyptian Businessmen Association, praised the keenness of Dr. Mohamed Maait, Minister of Finance, to consolidate bridges of cooperation with the business community. In a way that contributes to stimulating investment and increasing production capacities, noting that the government attaches great importance to the localization of industries, which is reflected in the dependence on the local product in national projects.
He added that the extraordinary efforts undertaken by the Ministry of Finance to integrate the informal economy into the formal economy will contribute to increasing the volume of domestic product and raising the volume of Egyptian exports to $100 billion annually. In implementation of the directives of President Abdel Fattah El-Sisi. Dr. Nader Riad, a member of the Board of Directors of the Egyptian Businessmen Association, a member of the German Manufacturers Association, said that the engineering industries are a “pomegranate of the balance” and an important breakthrough to achieve the desired industrial development, pointing out that improving the quality of services, especially the services of after-sales centers, makes us move forward. From a regional to a global scale, and to be more competitive in foreign markets, especially European ones that need international standards. He stressed the importance of the pivotal role of the engineering industries, which are no less important than the garment export sector, the agricultural sector, and other sectors, stressing the need to reconsider supporting engineering industries as one of the most important Egyptian industries. Mostafa El-Nagary, Chairman of the Exports Committee of the Egyptian Businessmen Association, praised the role of the Ministry of Finance in positive and rapid communication with various government agencies, to support the industrial, agricultural and commercial sectors, overcome the obstacles they face, and encourage agricultural investment to reduce import to a minimum, and maintain the volume of foreign currency. Reducing spending and increasing domestic production. Muhannad Taha Khaled, a member of the Board of Directors of the Egyptian Businessmen Association, explained that the facilities provided by the Ministry of Finance to support exports, especially the recent initiative announced by Dr. Encouraging the industrial and production sector, and achieving fair competition in the Egyptian markets. Mohamed Abdel Rahman, Vice President of the Egyptian Youth Business Association, said that the meeting with the Minister of Finance gave the business community a general vision of financial policies, the extent of growth in the Egyptian economy, and the reflection of economic reforms on the performance of the state’s general budget, praising the efforts of the Ministry of Finance in developing and mechanizing the system. Taxation, export support initiatives, digitization of financial systems and services, which contribute to increasing domestic production, integrating the informal economy to achieve fair competition, and increasing exports, in a way that is reflected in the improvement of financial indicators. He stressed that business youth are present in different sectors and industries, most notably: foodstuffs, spinning and weaving, real estate and medicines, which the state realizes, and is reflected in initiatives to encourage manufacturers and traders, especially young people. Abdel Hamid El Demerdash, Chairman of the Agricultural Export Council, pointed out the importance of adopting a number of initiatives that contribute to achieving agricultural development, raising productivity rates, and enhancing the competitiveness of agricultural exports in global markets. Representatives of the Businessmen and Youth Associations succeeded in enriching the societal dialogue with some positive proposals, and the minister pledged to study them, in coordination with the concerned authorities; This will contribute to the localization of the national industry, increase local production, stimulate the investment environment, and expand the export base. Representatives of the Associations of Businessmen and Young Businessmen thanked the Minister of Finance for his keenness to listen to the business community, get to know closely the challenges facing them, and their proposals, and his promise to study and implement them, in order to help achieve comprehensive and sustainable development.