Maait Offers Initiative to Lift Tax Seizures After Paying 1% of Dues

Egyptian Finance Minister Mohamed Maait offered an initiative to immediately lift customers' tax seizures if they only pay 1% of the principal amount owed.

This came during the meeting of the Economic Ministerial Committee, headed by Prime Minister Moustafa Madbouly on Friday.

Some 93 thousand customers experience tax seizures

The meeting discussed the mechanisms for implementing the directives of President Abdel Fattah El-Sisi by looking at Maait's proposals to coordinate with banks, through the central bank, in order to negotiate with clients, who are subject to tax seizures “levying”.

Meantime, the committee works to reach a settlement and specify payment arrangements for the amounts owed to banks. Seizures of bank accounts and bank assets may be attempted by creditors if the borrower can't keep up with the monthly debt or a specific loan.

According to data, the number of customers, who experience tax seizures amount to 93 thousand customers.

The Egyptian Minister of Finance Mohamed Maait said earlier this year that taxes represent 75 percent of the state’s revenues, adding that every pending tax is borrowed from external sources with compounding interest.

The committee also reviewed the recommendations of the economic symposium held by the Prime Minister last week with a group of experts in politics, economics and  international relations regarding the future of the Egyptian economy post-coronavirus, in addition to the opportunities and challenges the pandemic imposes. It was also pointed out to the formation of sub-working groups to develop Specific implementation programs during the coming period.

In another context, the committee agreed on implementing the necessary legislative amendments to allow licensing of natural gas intensive industries, mainly fertilizers and petrochemicals to operate in a free zone system, which will encourage investment, operation and export, especially since recent discoveries have led to the availability of large quantities of natural gas in the country.

It is noteworthy that the Egyptian Ministry of Finance announced, last March that it will fully exempt those who receive an annual income of up to EGP 22,000 from income tax, adopting a new tax system, which will achieve justice for all, especially lower-income brackets.

“An employee in the old tax system benefits from a personal exemption of EGP 7,000 and another tranche at a value of EGP 8,000, meaning that the total current exemptions is EGP 15,000, while the new tax system will deduct an additional EGP 7,000 for a total exemption to EGP 22,000,” the statement pointed out.