05 April 2017
Egypt plans to offer tax cuts on certain industrial sectors, as an incentive to encourage investment in its struggling economy.
Import-dependent Egypt has battled to attract hard currency and revive its economy since a 2011 popular uprising drove tourists and investors away.
Over the last three years President Abdel Fattah Al Sisi’s government has adopted an economic reform plan that included subsidy cuts and the floating of the Egyptian pound. Last year it secured approval for a $12 billion loan from the IMF.
"We have designed a temporary incentive program that attracts certain industries in certain areas," Mohamed Khodeir, CEO of Egypt's general authority for investment and free zones told Zawya in an interview on Sunday.
As part of the new investment law, which is due to be approved by the Egyptian parliament in a few weeks, Khodeir said authorities are planning to include a new rule that could allow businessmen to redeem up to 40 percent of their business costs in the form of tax reductions.
The proposed new rule will apply to specific sectors being targeted by authorities, such as medium-cost education, electricity, food industries, pharmaceutical and manufacturing, Khodeir said.
"We are targeting needy areas and sectors that we need to lower their importation and increase their exportation," Khodeir said, speaking on the sidelines of the Annual Investment Meeting in Dubai.
New investment law
Egypt's investment law was first issued by the governed in 2015 and was later amended. The law is aimed at facilitating business-related regulations and licenses and has long been demanded by the Egyptian business community.
Khodeir said the law is expected to specify a period of sixty days for businesses to acquire their operating licenses, down from around three years at present. It will also include clear guidelines on the business licensing procedures and any other requirements.
The law will also be used to measure the performance of the government’s investment authorities. "The law for the first time will tie the KPIs (key performance indicators) of any government official in the investment field to his achievement in facilitating businesses," Khodeir said.
Egypt’s level of foreign direct investment (FDI) rose to $6.8 billion during the fiscal year 2015/ 2016, up from $6.4 billion in the previous year, he said.
© Zawya 2017
Egypt plans to offer tax cuts on certain industrial sectors, as an incentive to encourage investment in its struggling economy.
Import-dependent Egypt has battled to attract hard currency and revive its economy since a 2011 popular uprising drove tourists and investors away.
Over the last three years President Abdel Fattah Al Sisi’s government has adopted an economic reform plan that included subsidy cuts and the floating of the Egyptian pound. Last year it secured approval for a $12 billion loan from the IMF.
"We have designed a temporary incentive program that attracts certain industries in certain areas," Mohamed Khodeir, CEO of Egypt's general authority for investment and free zones told Zawya in an interview on Sunday.
As part of the new investment law, which is due to be approved by the Egyptian parliament in a few weeks, Khodeir said authorities are planning to include a new rule that could allow businessmen to redeem up to 40 percent of their business costs in the form of tax reductions.
The proposed new rule will apply to specific sectors being targeted by authorities, such as medium-cost education, electricity, food industries, pharmaceutical and manufacturing, Khodeir said.
"We are targeting needy areas and sectors that we need to lower their importation and increase their exportation," Khodeir said, speaking on the sidelines of the Annual Investment Meeting in Dubai.
New investment law
Egypt's investment law was first issued by the governed in 2015 and was later amended. The law is aimed at facilitating business-related regulations and licenses and has long been demanded by the Egyptian business community.
Khodeir said the law is expected to specify a period of sixty days for businesses to acquire their operating licenses, down from around three years at present. It will also include clear guidelines on the business licensing procedures and any other requirements.
The law will also be used to measure the performance of the government’s investment authorities. "The law for the first time will tie the KPIs (key performance indicators) of any government official in the investment field to his achievement in facilitating businesses," Khodeir said.
Egypt’s level of foreign direct investment (FDI) rose to $6.8 billion during the fiscal year 2015/ 2016, up from $6.4 billion in the previous year, he said.
© Zawya 2017
