Egypt Plans VAT Reforms: IMF Backs Economic Program

The International Monetary Fund (IMF) has stated that the Egyptian government is committed to fiscal consolidation, aiming to increase tax revenue by 3% of GDP during the economic reform program. A key component of this strategy involves VAT reforms, projected to generate an additional 1% of GDP in revenue over a 12-month period. Egypt plans to submit a package of VAT reforms to parliament by the end of November. The IMF is supporting Egypt’s economic program with an $8 billion loan disbursed in tranches until 2027, the program’s duration. The current VAT law includes a list of 57 goods and services exempt from VAT, encompassing items like food, financial services, education, healthcare, land transactions, and raw materials.