Egypt to integrate AI technologies into tax system: ETA chief
Egyptian Tax Authority (ETA) is preparing to integrate artificial intelligence (AI) technologies into its operations as part of the state’s wider digital transformation drive, Rasha Abdel-Aal, the authority’s head, announced.
Abdel-Aal said the step marks a first phase in a series of technological initiatives aimed at modernizing tax administration, strengthening institutional capacity, and improving services for taxpayers through data-driven decision-making.
She added that a dedicated task force has already been formed within the authority to serve as the nucleus for embedding AI applications into the tax system.
The move comes in line with directives from Minister of Finance Ahmed Kouchouk and supports Egypt Vision 2030 targets for digital transformation.
The announcement followed the authority’s participation in the IEEE Computer Society Artificial Intelligence 2025 Caravan, held under the auspices of the Ministry of Communications and Information Technology.
The caravan, which ran from April to July 2025, included lectures and workshops at leading universities, including the American University in Cairo, the German University in Cairo, the Coventry University in Egypt, Egypt University of Informatics, the Nile University, the Arab Academy for Science and Technology, El Sewedy University, and the National Academy for Information Technology.
During the caravan, tax authority representatives presented pilot project ideas for applying AI to address operational challenges, enhance services for taxpayers, and streamline workflows.
Several of these ideas have been approved for implementation in the coming phase, Abdel-Aal noted, stressing that the authority will uphold the highest standards of data security and confidentiality.
"This represents a cornerstone in adopting AI-based solutions and paves the way for a comprehensive digital transformation of Egypt’s tax system," she concluded.
Egypt’s tax revenues jumped by 36 percent in 2024, driven by strong engagement from taxpayers following the government’s recent tax facilitation initiatives.
The country's tax revenues are projected to grow significantly in the current FY2025/2026, which started 1 July 2025, driven by reforms in tax administration, digitalization, and customs modernization, according to the fiscal year budget plan.
Income tax revenues are also expected to jump by 22.9 percent year-on-year to EGP 1.44 trillion, supported by collections from wages, salaries, treasury bills, bonds, and business profits.
Moreover, value-added tax (VAT) on goods and services is forecasted to rise sharply by 20.8 percent to EGP 967.9 billion, reflecting the government’s ongoing expansion of electronic tax systems and the decline in manual processes.
Other indirect taxes are also anticipated to bring in EGP 118 billion, up from EGP 80 billion in FY2024/2025, as authorities update the tax framework, broaden the use of digital platforms, and adjust rates to align with economic activity.
Meanwhile, customs revenues are set to increase by 14.7 percent to EGP 135.8 billion, supported by a pickup in trade flows, particularly in imports of consumer goods and production inputs, alongside reforms aimed at modernizing customs procedures.