Abou El-Enein:
- The State’s financial vision has shifted from a tax-collection mindset to a revenue-generation approach driven by investment
- Tax incentives have encouraged small and medium-sized enterprises to join the formal economy
- The current tax law has undergone more than 20 amendments… a new law is needed to match the future economy
- Egypt needs to attract global companies that own advanced technology and modern industries
- I call for coordination between the Ministries of Finance, Investment, and Industry to build a competitive economy
- I propose incentive laws encouraging the reinvestment of profits within Egypt instead of transferring them abroad
MP Mohamed Abou El-Enein, Member of the House of Representatives, announced his approval of the government’s draft law amending certain provisions of the Income Tax Law, stressing that Egypt is witnessing an important transformation in fiscal policy philosophy, shifting from relying on increasing taxes to adopting a strategy aimed at generating revenues through attracting investment and stimulating economic activity.
He affirmed, during his speech at the plenary session of the House of Representatives, that the recent package of tax reforms and policies adopted by the government reflects this positive shift, praising the incentives and facilitations included, which have encouraged the small and medium-sized enterprises sector to join the formal economy and expand investment under the state’s regulatory and tax framework.
He explained that these steps represent an important starting point toward building a more competitive investment environment, contributing to expanding the production base, increasing growth rates, and creating new job opportunities.
Abou El-Enein addressed three main messages to the government, beginning by stressing that the current Income Tax Law has been in force for more than twenty-one years since 2005, and has undergone more than twenty legislative amendments, asking: “Isn’t it time for a completely new tax law, built on a modern investment-oriented vision that keeps pace with global economic changes and reflects the state’s future direction?”
He emphasized that Egypt needs a modern tax framework characterized by stability and clarity, one that provides investors with confidence and forms part of a comprehensive strategy to enhance the competitiveness of the national economy and attract more local and foreign investment.
In his second message, Abou El-Enein called for more targeted investment policies aimed at attracting major global corporations that lead in advanced technology and future industries, in line with the state’s vision of joining the world’s top 30 economies by 2030.
He noted that Egypt does not only need capital, but also investors capable of transferring modern technology, localizing advanced industries, and building national capacities while training Egyptian youth in artificial intelligence, digital transformation, and advanced technological fields, stressing that real investment begins with investing in people and knowledge.
He called for full coordination between the Ministries of Finance, Investment, and Industry to establish a unified vision that meets the requirements of the next phase, providing an integrated package of incentives and policies that make Egypt one of the most attractive destinations for high-quality investment.
In his third message, Abou El-Enein proposed establishing a smart legislative and incentive framework encouraging local and international companies operating in Egypt to reinvest a significant portion of their profits in new productive projects instead of transferring them abroad, thereby increasing investment rates, boosting productive capacity, and supporting sustainable economic growth.
He pointed out that many successful international experiences have adopted this approach to encourage the reinvestment of profits domestically, resulting in significant economic and developmental breakthroughs, affirming that Egypt has the necessary capabilities to implement such policies and achieve positive results in the coming years.
He concluded by stressing that the current stage requires more flexible economic legislation and integrated fiscal and investment policies that enhance investor confidence and support the state’s direction toward building a strong and competitive economy based on production, technology, and knowledge, in line with Egypt’s Vision 2030 and its goal of strengthening its position on the global economic map.
