Back to the complete issue
Thursday, 2 March 2017

House Industrial Committee to complete its review of the automotive directive by mid-March

The House Industry Committee is set to complete its review of the automotive directive and send the bill back to a plenary session of the House of Representatives by mid-March, Al Borsa reports. The committee held discussions with auto industry players this week, with importers continuing to object to the structure of the minimum export quotas necessary to benefit from tax incentives. Under the bill, a car company’s exports must at least equal 25% of the value of their imports to benefit from the incentives. Importers are looking to see that quota reduced to 5-10%. (Under the proposed legislation, car importers — as distinct from assemblers — would have the right to import a quota of fully assembled vehicles under the same preferential tax structure that domestic manufacturers would enjoy only if their exports of automotive components meet a minimum threshold.) The bill, which would provide manufacturing and export incentives along the value chain to promote the development of a domestic auto industry, but has been delayed by a lobbying war pitting auto assemblers and auto importers against each other. We’ll have more on the automotive directive next week.

Meanwhile, Finance Minister Amr El Garhy and CBE Governor Tarek Amer will appear before the House Economics Committee on Monday and Tuesday of next week to discuss clauses in the new Investment Act about investment incentives, private free trade zones, and profit repatriation for foreign companies, Al Borsa reports. The committee hopes to understand more about the guidelines regulating the special incentives given to foreign investors and lobby for the return of FZs. The bill is expected to come to a vote by the end of March.

Several members of the Economics Committee are boycotting discussion of the Investment Act in continued protest of the selection of Support Egypt coalition head Amr Ghallab as the new chair of the committee, Al Mal reports. Ghallab replaced Ali El Moselhy, who was tapped to become supply minister. The MPs are claiming that pro-government Support Egypt stacked the deck against them in the committee election. House speaker Ali Abdel Aal has intervened to no avail.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.