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    New Cooperation Protocol for Taxes e-Collection

    Cairo, 14 March 2013

    Minister of Communications and Information Technology, Mr. Atef Helmy witnessed the signing of a cooperation agreement between Egypt Post and the Electronic Payment and Collection Center attached to the Ministry of Finance and managed by e-Finance Company.

    The cooperation protocol aims to launch immediately the electronic tax payment service at Egypt Postís offices in the different governorates. This comes as part of the interest in developing the Postal Authorityí services and introducing new services to make it easier for citizens.

    Mr. Atef Helmy highlights the fact that MCIT is keen to participate in national projects, which have direct impact on making citizens lives easier.

    He asserts that the most important of these projects is the automation of the governmental financial payment systems achieving a quantum leap in the last period. He stresses that this payment system will help post offices to be geographically wide spread in all neighborhoods and cities nationwide.

    The minister points out that this payment service will be activated during March 2013 in 340 post offices in various regions, in a plan to reach 1,200 post offices in a year.

    The citizens will benefit mainly from having an easy payment process, the availability of a large number of electronic payments outlets, and the possibility of paying in the nearest post office to the taxpayerís residence or office without any geographical limitation. In addition, there is another advantage such as recording the taxpayersí payment processes electronically in short time.

    On the other side, the government will benefit from this payment system, both from speeding up the process of adding the tax payments to the public treasury accounts, and in controlling and securing the governmental proceeds.

    The minister says that the cooperation agreement with the Tax Authority is only a start to add other services to facilitate to the citizens other electronic payments such as customs and real estate taxes in post offices.

    From his part, Mr. Ayman Sadek, ENPO president, states that benefiting from paying taxes electronically only requires the taxpayer to know the number of his tax record, and by using it, the value of the sales and income tax will be automatically known and thus paid easily in few minutes with an issued receipt, without the need to go to branches of tax offices.

    For other types of taxes such as tax deduction at source, and payroll and stamp taxes, he assures that the taxpayer only needs to know the registration number of his tax record, noting that the postal authorityís employees will make sure of the dataís accuracy through screens of government payments that are supervised and managed by the Electronic Payment and Collection Center of the Ministry of Finance.

    After collecting the required amount, the center shall notify the Tax Authority with the completion of the process in no time.

    Mr. Ayman Sadek explains that the customer will get a receipt from the post office stating the completion of the tax payment process, then he will submit his tax record to the tax office; accompanied by a copy of the receipt showing the amount of tax paid.

    Also, from his part, Mr. Ibrahim Sarhan, Chairman and Managing Director of e-finance, clarifies that the electronic payments system is experiencing significant growth in its financial payouts, showing that the payments jumped by 250% compared to when the system began in 2009.

    Mr. Ibrahim Sarhan said that this growth is due to the advantages of the electronic system, especially in terms of the privacy and security and safety of cash trading, and avoiding the risks accompanied with traditional payment methods such as exposure to theft or robbery or error in counting banknotes.

    In addition that keeping the money within the banking system contributes to accelerating the rotation of financial flows of the national economy in general since government payments represent 60% of the financial flows, which is reflected positively on Egyptís GDP growth rates.

    Ibrahim Sarhan argues that the agreement with the postal authority will increase the number of bank and post branches that collect taxes to 2200 branches and post offices, which will make the largest network of electronic financial payments in Egypt.

    The number of actual banks using this system is 28 commercial banks, and so many will contribute to provide quality service to tax and custom clientele who would benefit from the electronic payment service, especially that these are entities with high credibility to the community.

    Sarhan predicts that the amount of electronically paid taxes will be doubled throughout the current year, taking into consideration that the ratio had already increased by 144% last year due to system safety, customer confidence, and the speed in achieving tax payments or in the release of goods at customs.

    This has increased the positive impact of the development of payment systems on the national economy, where the government has saved millions of Egyptian pounds by increasing the effectiveness of collection, as well as the ability to control payments and government receipts.

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