The Egyptian Tax Society asked the Ministry of Finance to implement tax incentives again which was implemented last year with a rate ranging from 10% to 25% in order to plug the budget deficit through receiving the tax arrears, said Ashraf Abdel Ghani, the Chairman of the Egyptian Tax Society.
There are some procedural obstacles to collecting arrears, Abdel Ghani added, calling for the formation of a committee compromising of tax experts, professors and representatives from Tax Authority in order to set some regulations for settling disputes and collecting tax arrears.
Abdel Ghani stressed the importance of tax policy reform as the budget deficit is widening. The number of taxpayers shall be increased and this will be done through encouraging the owners of unofficial firms to license their businesses. In addition, exempting small enterprises from taxes will be a good method to make them submit their tax return, Abdel Ghani noted.
The principle of justice is the main reason for increasing tax income and combat tax evasion. The country cannot exempt any party from taxes unless it will affect the society positively. There is an urgent need for a new sales law which is currently prepared by the Tax Authority under the name of the added value law, Abdel Ghani said.
