Egypt has considerable potential to strengthen domestic revenue mobilization to support inclusive growth and reduce reliance on external financing. To consolidate recent gains, Egypt needs to continue its efforts to enhance access to finance and to modernize the administrative procedures of its tax system through digitalization by, for example, advancing automation and fully integrating digital tools such as e-invoicing and risk-based compliance monitoring. Simplifying and consolidating tax legislation would reduce administrative burdens and improve transparency. In addition, a comprehensive review of tax incentives and exemptions would help to ensure that benefits align with national development goals.
At the institutional level, it would be very important to build national capacity in such specialized areas as international taxation, International Financial Reporting Standards and sector-specific auditing. Such capacity should be institutionalized within the Egyptian Tax Authority to ensure its sustainability in the long term. Formalizing the informal economy through simplified tax regimes and improved taxpayer services would strengthen the tax base while increasing equity. At the same time, continuing efforts to develop and adopt unified auditing guidance would reduce inconsistency among offices and enhance trust in the system.
