FinMin has paid exporters EGP 1.4 bn in subsidy arrears -Maait
FinMin has paid exporters EGP 1.4 bn in subsidy arrears -Maait: The Finance Ministry has disbursed over the past few weeks EGP 1.4 bn in overdue subsidy payments the government has owed to exporters since last year, Finance Minister Mohamed Maait said yesterday, according to Hapi Journal. A number of businesses claimed earlier this week that the ministry had not settled the overdue subsidies and that no contracts have been signed since officials reached an agreement in May to settle the payments. According to Maait, the government is in talks with businesses to deduct the arrears from their taxes, customs or the cost of industrial land, under the new framework outlined by the Trade Ministry in July.
Background: The Egyptian Businessmen’s Association estimated last year that the government could owe exporters EGP 9 bn, while Food Export Council member Karim Abou Ghaly put the figure even higher at EGP 12 bn. The state-run Export Subsidy Fund is supposed to pay out 8-12% of the value of exports to companies, depending on how much local content is used and the export destination.