Egypt approves first taxpayer-funded bonds to offset future tax liabilities

Egyptian President Abdel Fattah El-Sisi has approved the issuance of new tax bonds, funded by taxpayers and deductible from their future tax obligations, offering attractive returns aimed at reducing the country’s financing needs and debt servicing costs.

The decision was made during a meeting between the president and the Minister of Finance, who reviewed the final financial performance for the 2025/2026 fiscal year and highlighted key financial and economic indicators in the budget.

The finance minister noted that Egypt’s real growth rate reached 5.2% during the first nine months of the 2025/2026 fiscal year, with improvements across most economic performance indicators. These included a reduction in external debt, an expanded tax base through simplified and digitized procedures, increased non-tax revenues, and stronger performance in Egypt’s financial markets and stock exchange.

The presidential spokesperson stated that Ahmed Kouchouk presented the second package of tax incentives, which took effect following presidential approval. He emphasized their role in supporting growth, streamlining procedures, reducing burdens, and enhancing Egypt’s economic competitiveness. The business community responded positively to the initiative, resulting in higher tax revenues in the past fiscal year.

President El-Sisi stressed the importance of developing the tax system and improving services, directing the launch of a third package of tax incentives and the continued building of trust with investors.

The meeting also reviewed developments in government debt indicators, with the government successfully reducing debt as a percentage of GDP by approximately 13.2% over the past two years. Further improvements are targeted to benefit both citizens and investors.

The meeting discussed new initiatives to encourage the industrial sector to shift to solar energy and finance the recycling of solid waste into alternative fuels, aiming to lower costs and benefit all stakeholders.

President El-Sisi underscored the need to enforce laws governing the use of coastal tourism land, instructing the formation of a state committee to assess the situation and ensure public access to beaches. He also ordered a ban on construction within 200 meters of the shoreline without prior approval.

The president further directed the formation of a committee to monitor real estate projects across all governorates, to ensure timely delivery of units and adherence to contracts, with violators to be held accountable and regular updates provided to the president.