Digital Transformation of Egypt
Egypt introduced a groundbreaking electronic invoicing (e-Invoice) system last Sunday. Egyptian Finance Minister M. Maait stated that the e-invoicing system, which will be the first in the country’s financial history, is an important milestone in Egypt’s digital transformation as part of Vision 2030.
It is envisaged that this system will help the Egyptian state achieve its tax and economic goals and contribute to the efficiency of tax practices. According to Maait, thanks to the e-billing system, the informal economy is recorded and the tax system and the commercial world are integrated. The minister stated that this would “revolutionize” the financial field for Egypt and warned that legal action, including judicial investigation, would be taken against taxpayers who refuse to implement this system. The minister’s clarity on tax regulations and their enforcement can be seen as an important milestone for the development of Egypt. According to the Egyptian Center for Public Mobilization and Statistics, the ratio of the country’s informal economy to the official economy is around 50 percent. In addition to Egyptian economists, the volume of informal economic activity in Egypt is estimated at 395 million US dollars.
Egypt, the second-largest economy in the Arab world after Saudi Arabia, is also the most populous country in the Arab world. The fact that structural problems have not been resolved despite liberalization efforts increases the importance of tax revenues, which are the main source of income for the state. It can ensure that the revolutionary tax changes will increase the welfare of the Egyptian people and thus make the income distribution of the state fair. It can be predicted that the standard of living of the Egyptian people will increase as the efficiency of tax collection with public applications increases.
Melasoft Information Technologies, which is closely following the digital transformation processes in the world, especially in our nearby region, is not delaying the development of solutions to the changing needs of Egyptian taxpayers. Thanks to Melasoft’s e-billing solutions for Egypt, you save time and money on your transactions in Egypt, and with the Melasoft SAP ERP system you can use the integrated management of important financial processes.