Shadow economy is a main challenge for Egypt

Turning the shadow economy into an official economy is one of the main challenges facing Egypt today, Head of the American Chamber of Commerce (AmCham), Tarek Tawfik, said in a conference on Monday.

Tawfik said the unofficial economy in Egypt amounts to 60 percent of the formal economy, noting that Egypt has various economic opportunities.

Tawfik pointed out that currently there are 2,000 companies paying 80 percent of the corporate taxes, suggesting that attracting more companies to the official economy will increase tax revenue and will stabilize the business sector in Egypt.

AmCham’s president appreciated the economic reform programs recently implemented, saying they were not a luxury but a matter of life or death. The reforms helped Egypt end its recent dollar and energy shortages.