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Sunday, 23 June 2019

Egypt to dedicate EGP 6 bn annually in the budget for exports subsidies

Government to dedicate EGP 6 bn per year to export subsidies: The government will set aside EGP 6 bn annually in its budget for export subsidies as of FY2019-2020, Vice Minister of Finance Ahmed Kouchouk said, according to a Trade and Industry Ministry statement. The new program will allow increasing subsidies in tandem with increasing exports as of the second year of implementation, Kouchouk said. The finance and trade ministries have held meetings to discuss allowing exporters to net overdue subsidies off against their taxes, and Trade and Industry Minister Amr Nassar is set to meet with the heads of export councils.

Background: Exporters are waiting to hear more about potential tax breaks as part of a new framework that could see the government make good on overdue export subsidy payments. The program will effectively pay out what is claimed to be some EGP 12 bn in incentives owed to Egyptian exporters by the Export Subsidy Fund since last year.

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