A new global report from the World Bank (WB) has found that Egypt’s tax rates are well below the global average. The country’s average total tax rate, which is defined as the amount of taxes and mandatory contributions payable by businesses after allowable deductions and exemptions as a share of commercial profits, stands at 42.6 per cent.
This is well below the global average of 44.7 per cent, found in the WB’s Paying Taxes 2013 research. Ahram Online reports that Egypt’s tax revenue currently stands at an average of 14.1 per cent of total gross domestic product, with the Ministry of Finance expected to collect LE232 billion by the end of the year.
The report also found problems with the country’s tax system efficiency, with Egypt ranked 145th in the world out of 185 in this regard. Only this month, the Egyptian government sought to shore up the state budget by bringing in capital gains tax and two new income tax brackets.