House gives final sign-off on public-sector, pensioner bonuses: The House of Representatives approved disbursing a EGP 300 bonus to public-sector employees and pensioners this month to help mitigate the impact of the EGP float.

What they said: The payment will help vulnerable and low-income people bear the high cost of living triggered by the drop in the EGP’s purchasing power, said Adel Abdel Fadil, chair of the House Manpower Committee. “This is an exceptional EGP 300 bonus which will help mns of citizens absorb the shock of the current difficult economic crises gripping Egypt and the entire region,” he said. Some 4.6 mn state employees and 10.5 mn pensioners stand to benefit from the bonus.

The amendment is part of a broader package of measures announced by the government last week to protect low-income households from effects of the currency devaluation, which is expected to drive up inflation and worsen poverty rates. Among the measures are a EGP 300 increase in the public-sector minimum wage and an extension to the freeze on household electricity bills.

What’s next: The bill will be published in the Official Gazette and go into force on 1 November.

FX INCENTIVE BILL FOR INDUSTRY ENTERS HOUSE-

Tax breaks for FX: The House yesterday received a new government-drafted bill granting income tax breaks to investors who use FX to finance at least half of the cost of their projects, less than two weeks after ministers approved the plans. Under proposed amendments to the 2017 Investment Act, companies would receive a tax cut of up to 55% on income generated by projects funded by FX, a move designed to attract more hard currency into the country and shore up its external position.

What we know:

• At least 50% of the project’s cost must be funded by FX;
• The project should be in operation within six years of the law coming into force;
• Cabinet will determine which industries will benefit from the incentives;
• Companies will be receive the tax deduction for up to 10 years;
• The rebate would be paid to companies within 45 days of the tax return submission deadline.