Egypt's Ministry of Finance announced a 30.8% rise in tax revenues, equivalent to EGP 380.3 billion, during the first eight months of fiscal year 2025/2026, bringing totals to EGP 1.614 trillion from EGP 1.234 trillion a year earlier. The ministry attributed the growth to broad-based increases across most tax categories, fueled by business engagement and recent tax reforms.
The Ministry of Finance issued its report on Wednesday, stating that income tax revenues surged by about EGP 167 billion, or 46.5%, to EGP 526.7 billion. This included a EGP 39.8 billion rise in payroll taxes to EGP 149.7 billion and a EGP 23.2 billion increase in taxes on commercial and industrial activities to EGP 69.9 billion.
Value Added Tax (VAT) revenues climbed EGP 129.2 billion, or 22.5%, to EGP 702.4 billion, with VAT on goods up 14.2% to EGP 374 billion and on services up 31.5% to EGP 100.8 billion. Property tax collections grew 27.7% to EGP 270.8 billion, while international trade taxes rose 13% to EGP 89.5 billion.
The state budget recorded a primary surplus of EGP 656.8 billion, or 3.1% of GDP, compared to EGP 330 billion (1.8%) last year. The overall deficit narrowed to 4.6% of GDP from 4.8%, mainly due to stronger tax revenues.
Total public revenues increased 39.7% to EGP 2.015 trillion, while expenditures rose 28% to EGP 2.954 trillion. The ministry highlighted efforts to curb public spending, including a EGP 1.2 trillion cap on public investment for FY 2025/2026.