Egypt allocates EGP 28bn to export support in FY2025/26, up 55%: Finance minister

Egypt allocated EGP 28bn to export support during the 2025/26 fiscal year, a 55% increase from the previous year, as part of the government’s efforts to boost production, exports, and private sector investment, Minister of Finance Ahmed Kouchouk said.

Speaking during the first meeting of the joint committee between the Ministry of Finance and the Egyptian Exporters Association – Expolink (EEA), Kouchouk said the government’s fiscal policy is designed to encourage investment by providing strong support for production and exports.

He said the state budget reflects the government’s priorities of driving economic growth, enhancing competitiveness, and maintaining fiscal stability.

Kouchouk added that the government’s economic team is working in close coordination to create a more attractive business environment for the private sector, with continuous cooperation across ministries and relevant authorities to integrate economic priorities into government programmes, initiatives, and implementation.

The minister reaffirmed the government’s commitment to continuing structural reforms aimed at delivering tangible improvements to economic performance and living standards.

He noted that the business community had responded positively to the government’s tax facilitation initiative, which contributed to a 28% increase in tax revenues during the previous fiscal year without introducing any new tax burdens, reflecting stronger economic activity and improved taxpayer compliance.

Kouchouk stressed that the government remains committed to maintaining direct communication with exporters and investors to address any challenges they face, expressing hope that ongoing policy reforms would translate into tangible benefits for the business community.

Rasha Abdel Aal, Head of the Egyptian Tax Authority, said the second package of tax facilitation measures is designed to strengthen the partnership of trust with taxpayers by introducing additional incentives and simplifying tax procedures.

She said the package includes a range of practical and flexible solutions to address tax-related challenges and improve the overall tax environment.

Abdel Aal added that the authority is ready to implement the package as soon as the necessary legislation is enacted, alongside several facilitation measures that have already been introduced without requiring legislative amendments.

She also noted that the law governing the settlement of tax disputes has been extended until the end of December, while solidarity contribution payments will now be deductible from the tax base to reduce taxpayers’ financial burdens. In addition, the suspension period for value-added tax on machinery, equipment used in industrial production, and medical devices has been extended from two years to four years.

Ahmed Amway, Head of the Egyptian Customs Authority, said efforts are continuing to simplify customs procedures and reduce average customs clearance times.

He said an advanced risk management system has been introduced to support advance customs clearance, giving priority to companies participating in the Authorised Economic Operator (AEO) programme. Under the new system, shipments assigned to the yellow inspection channel will undergo documentary checks only, while those in the green and blue channels will be subject solely to X-ray inspection.

Nevine Mansour, Adviser to the Minister of Finance for Economic Institutions Relations, said the government has paid EGP 70bn to exporters over the past six years, including EGP 12.6bn during the last fiscal year.

She added that the government aims to clear all outstanding export subsidy arrears within the next two years, reflecting its commitment to strengthening exports and enhancing their competitiveness in regional and international markets.

Mohamed Kassem, Chairperson of the Egyptian Exporters Association, outlined the main challenges facing Egyptian exporters and welcomed the government’s tax and customs reforms, saying they would help improve the competitiveness of Egyptian products and support export growth.

He described exports as the true engine of economic development, highlighting 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 support comprehensive economic development, create jobs, and improve living standards.

Samir Aref, Deputy Chairperson of the EEA, stressed the importance of encouraging corporate mergers through supportive policies that simplify procedures, accelerate approvals, and remove regulatory obstacles.

He said such measures would help ensure the sustainability of merged companies, strengthen their competitiveness in domestic and international markets, and increase their contribution to Egypt’s economic growth.