Extracts from the Prime Minister `s Speech in the inauguration of the Large Taxpayer Center ( LTC) on 19 September 2005

The next phase will witness several economic reforms to encourage investment and capital flows. Time of tax collection and arbitrary tax has passed. The government new thought is based on a special strategy for a secured economic atmosphere which helps investment and growth as fast rates as possible. This why the government will provide a law draft to the parliament in its next session to amend the Sales Tax Law.

Currently the Real Estate Law is being amended to encourage the taxpayers to trust the government, which will lead to increase of tax receipts. The government has opened a new page its base is the mutual confidence with all taxpayers, hence there is no justification for tax evasion after eliminating the arbitrary tax estimations and so the government bets that the businessmen will comply to pay the real taxes and this will be proved by during filing their returns in next March.

The tax reform plan which is carried out by the government is based on a new thought for creating a new atmosphere which achieves stability and development which depends on four basic foundations :

1- Avoiding tax collection policy after it has been proved that the increase of tax revenues is achieved by the increase of growth rates.

2- Mutual confidence between taxpayer and government.

3-Adopting participation policy to reassure all members of society that the sums collected are spent on development process.

4- Raising the efficiency of human resources and the mechanisms through which the different government agencies work.