ASSESSMENT OF INCOME TAX POLICY IN ACHIEVING SUSTAINABLE DEVELOPMENT GOALS AS APPLIED TO EGYPTIAN COMPANIES

Document Type : Original Article

Authors

1 Faculty of Graduate Studies and Environmental Research, Ain Shams University

2 Faculty of Commerce,, Ain Shams University

Abstract

The study aims to assess the role played by income tax in general and corporate income tax in Egypt in particular in achieving the Sustainable Development Goals (SDGs) in Egypt. Egypt has been keen on achieving the SDGs through realizing sustainable economic, social, and environmental dimensions. The Egyptian legislator issued Income Tax Law No. 91 of 2005, seeking through its application to achieve social justice, increase tax revenue, and create an economic environment that supports free competition and private investment. The study adopted an inductive approach to analyze the reality of income tax policy in Egypt as applied to Egyptian companies due to its particular importance, especially in the average during the period from 2005 to 2021 in tax revenue, as it contributes about 80% of the Egyptian Tax Authority's revenue. The study also relied on a statistical approach to analyze the data during the study period by applying the Engle-Granger two-step co-integration model to estimate the long-term and short-term relationships between variables. The results of the study and the statistical analysis of the data showed the rejection of the study's hypotheses and the acceptance of the alternative hypotheses: first, that there is a significant statistical effect of income tax revenues on sustainable development indicators, and second, that there is a significant statistical effect of corporate income tax revenues on sustainable development indicators. The study concluded with several recommendations, the most important of which are: encouraging the integration of the informal economy into the formal economy, issuing a new tax system, providing an electronic information system, imposing tax penalties and incentives regarding environmental compliance, directing more government spending towards social performance to achieve the goals of the social dimension, and applying carbon tax on Egyptian industrial products.
 
 
 

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