Policy Viewpoints

Towards Mobilizing Fiscal Revenues and Boosting Economic Activity in Egypt

Publication Number: ECES-PVP31-E/A

July, 2012

Author : Magda Kandil

Type : Policy Viewpoints

The issue of social justice has taken center stage since the January 25 Revolution. In recent years, many Egyptians have suffered in the context of a growing economy as the growth model proved to exclude many and wealth did not trickle down. Post the Revolution, growing demands have focused on the need to reform public finances towards mobilizing additional revenues and trimming the waste in government spending. The scope to mobilize additional revenues has revolved around the current tax system. More specifically, the debate has focused on the scope to institute progressive taxes towards achieving social justice and making more resources available for much-needed social and development spending by the government. Opponents are concerned that progressive taxes could hinder the prospects of recovery in a fragile economy, reduce investment and result in less revenue for the government.