The Egyptian Tax Authority (ETA) has announced that proposed amendments to the VAT law — currently under discussion in Egypt's House of Representatives — include the following changes:

• The period for refunding outstanding credit balances will be reduced to four consecutive tax periods (four months), down from six months, in order to support businesses' cash liquidity.

• Businesses registered under the Tax Facilities Law with annual turnover not exceeding EGP 20 million will be eligible for credit balance refunds after just three months.

• ETA Chairperson Rasha Abdel Aal stated the proposed amendments come as part of the Finance Ministry's direction, under Minister Ahmed Kouchouk, toward accelerating tax refund procedures and easing financial burdens on registered taxpayers, particularly in the production, industrial, and services sectors — helping provide greater liquidity in the market and stimulate economic activity.

• She added that the additional benefit for small and medium enterprises (turnover up to EGP 20 million) is intended to support such businesses and encourage them to join the formal economy and benefit from tax advantages and facilities.

• Abdel Aal said accelerating credit balance refunds represents one of the important demands of the business community, reflecting the state's direction toward building a more efficient and flexible tax system based on partnership and trust with taxpayers, contributing to improving the investment climate and encouraging expansion in production.

The proposed amendments aim overall to ease burdens and stimulate investment and production.