Mohamed Aboul Enein, Member of the Egyptian Parliament praised the draft law submitted by the Ministry of Finance on providing incentives and reducing delay fees for late taxpayers, which helps to end tax disputes, increase public revenue, support economic activity as well as enhance confidence between investors and the tax authority.
He added that the law has an economic objective, as it motivates investors to pay off debts quickly, increasing public treasury revenues to meet increased spending due to the corona pandemic, and reduce the burden on financiers, in line with the state’s efforts to support various economic sectors and sustainable growth.
In his speech before a parliamentary session on Sunday, Aboul Enein suggested discussing the bill, in the presence of Finance Minister Mohamed Maait, to link the incentive that the taxpayer receives with the rate of taxes paid.
“In light of the current economic crisis and the lack of financial liquidity due to the corona pandemic, not all taxpayers are ready to pay immediately,” Aboul Enein said, suggesting linking the percentage of exemption to that of the of payment.
Aboul Enein proposes new draft law on taxpayers
“If the taxpayer pays 100% of the debt, whether before applying to the law or within 6 months, one will be exempted from 100% of the delay fees and the additional tax, while if 50% of the debt is paid, one will be exempted from 50% of late fees and surcharges,” he noted.
He added that this draft law benefits the state and contributes to increasing the rewards and benefits for taxpayers, allowing a larger number of investors to enjoy the exemption, encouraging others to pay.
Aboul Enein paid tribute to the government and the Minister of Finance for including social security arrears in exchange for benefits within the law, reducing the burden on sectors and individuals.
The Business tycoon also praised extending the law of settlement in tax disputes, which contributes to ending disputes and building confidence between the Tax Authority and taxpayers.