The government yesterday announced its first batch of new amendments to the tax system, which aim to ease the burden on taxpayers. Amendments include: Launching a central clearing system, putting a cap on late payment penalties such that the penalty does not exceed the original amount of tax due, establishing a pre-inquiry service for both local and foreign and raising the exemption threshold for submitting a transfer pricing study for international companies to EGP30 mn, instead of the previous EGP8 mn.

The government is set to announce further investment incentives, including a new export rebate program, Madbouly said.

The government is preparing substantial incentives to incorporate thousands of new taxpayers into the system, including a comprehensive tax amnesty covering VAT, stamp tax, and other tax obligations in addition to income tax, which had previously been the only category covered under the 2020 SMEs law.

A government source mentioned that there are two options for an alternative simplified collection mechanism for the capital gains tax: either the return of the stamp tax, or a fixed tax of 2% at the time of sale, which would be deducted immediately and collected by the ETA.

The government is negotiating with two Chinese companies to establish factories for electric and hybrid cars in Egypt during the coming year.

The government is continuing to work with gold miner Centamin to exploit the Sukari mine in line with the state’s existing contract, Madbouly said in comments on global mining company AngloGold Ashanti’s acquisition of Centamin for USD 2.5 bn. Egypt’s share is “undisputed and may even increase,” Madbouly added.

The Oil Ministry and Electricity Ministry are awaiting consumption reports and supply data from the relevant authorities ahead of a meeting next week to make a decision on the resumption of power cuts, a government source said.

Turkey has expressed interest in purveying Egyptian offshore natural gas via its floating storage units and gasification ships.

The prime minister affirmed that despite recent economic and geopolitical hurdles that saw the government rearrange its priorities for certain companies included in its privatization offering, with new companies to be announced in the coming period.

The EBRD intends to invest EUR1.2 billion in Egypt during 2024, potentially in trade financing and renewable energy sectors.

The Singaporean company Elite Solar announced an investment of USD150 million in Egypt to establish a solar energy manufacturing center with a production capacity of 8 gigawatts in the Suez Canal Special Economic Zone.

ORWE announced that it has contracted with IRSC Renewable Energy Solutions, a company specialized in building renewable energy systems, to install a 2.5-megawatt solar power plant in one of its factories in 10th of Ramadan City, with investments exceeding USD1.5 million.

Medical supplies division at the federation of Egyptian industries submitted three requests to the Egyptian drug authority to support and localize the medical supplies industries inside the Egyptian market, to enable its competitiveness locally and globally. 

CICH’s Asset Management arm intends to launch five sectoral equity investment funds in the fourth quarter of 2024 with an initial total combined value of EGP50 million, reaching EGP250 million within a year.

HDBK finances 200 units affiliated with the Urban Development Fund.