It is widely acknowledged that Egypt’s stabilization program has been highly successful. Stabilization, albeit necessary, is not sufficient to accelerate growth. Egypt needs to foster greater investment (including foreign direct investment) to achieve the envisaged high-growth scenario. While the tax burden is only a part of the investment climate, it plays a crucial role in determining investment decisions. Moreover, the recent trends of increased globalization place new and greater demands on the national tax regimes to secure a country’s tax competitiveness. The paper argues that in spite of recent tax reforms, the Egyptian tax system still undermines the efficiency and growth consideration of a good tax system.