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Wednesday, 26 December 2018

FinMin rejects Egypt’s exporters’ remuneration proposal

FinMin rejects exporters’ request for tax waivers: Finance Minister Mohamed Maait has turned down a proposal from exporters for tax and customs waivers as a way to compensate for the government’s failure to deliver on its export subsidy commitments, sources said on Monday. “The issue will be resolved at the nearest chance, just pay what you owe,” Maait was quoted as saying. The rejected proposal, which we had noted earlier was put forth by the Federation of Egyptian Industries, would have been an alternative solution to what exporters claim are EGP 9 bn in outstanding subsidies.

Background: The Trade Ministry has allegedly, for over two years, fallen short of its promise to pay out 8-12% of the value of exports to companies through its Export Subsidy Fund. The Finance Ministry disbursed EGP 504 mn last month after exporters released a statement urging the government to take action. Prime Minister Moustafa Madbouly had also vowed earlier this month to put an end to the delays.

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