The IMF said that the mission and the Egyptian government agreed that tax policy reforms would help Egypt succeed in its efforts to mobilize domestic revenues, and generate sufficient fiscal space to finance much-needed spending programs (particularly in health, education, and the social safety net) while reducing debt and debt service.
He added that these reforms should also aim to improve tax fairness and broaden the tax base, with a focus on reducing exemptions rather than increasing tax rates.
The IMF continued in its statement that the mission and the Egyptian government also agreed on the importance of strengthening the social safety net (especially the conditional cash transfer program) to help protect vulnerable groups from the high costs of living and recent energy price increases, as well as mitigate the impact of strict policies.
He stressed that discussions will continue during the coming days to complete agreement on the remaining policies and reforms that would support the completion of the fourth review.
It is worth noting that the International Monetary Fund mission headed by Ivana Vladkova Hollar held personal discussions with the Egyptian government during the period from November 6 to 20 in Cairo.
