From July 2023 to February 2025, the Economic Commission for Africa (ECA) worked with the Egyptian Tax Authority to support the national tax reform agenda of Egypt. The collaboration was aimed at addressing persistent structural challenges in the tax system, including a low ratio of tax to gross domestic product (GDP), a large informal sector, audit and enforcement gaps, and the preferential treatment of State-owned enterprises.
The intervention by ECA was strategically aligned with Vision 2030, the national sustainable development strategy, and domestic revenue mobilization goals, in particular for Large Taxpayer Centres and high-risk sectors. It was focused on providing technical assistance, policy advisory services and capacity-building. In addition, ECA supported the Egyptian Tax Authority in its efforts to modernize audit methodologies, enhance taxpayer compliance and introduce international standards in financial reporting, cross-border risk assessment and the taxation of State-owned enterprises.
The partnership yielded tangible outcomes. From July 2024 to April 2025, total tax revenue rose by 38 per cent, with significant increases across income tax, corporate tax and value added tax (VAT) collections. The number of tax disputes decreased, in particular at Large Taxpayer Centre 2, where 80 per cent of disputes were resolved. For the first time, tax contributions from publicly owned enterprises doubled, following the implementation of Law No. 159 of 2023, which established equal tax treatment for public and private entities.
Despite the progress, several challenges remain, including complex and fragmented tax legislation, the overuse of incentives, gaps in technical capacity and the limited integration of digital tools. In order to address the gaps, it is recommended that automation accelerates, audit procedures across tax offices are standardized and tax incentives and legal thresholds are reviewed.
The partnership between Egypt and ECA demonstrates the potential of technical assistance and regional collaboration for driving sustainable, equitable and efficient domestic revenue mobilization. Sustaining the momentum will be essential to building a fair, modern and efficient tax system that supports inclusive development and fiscal resilience.
