Egypt to launch today the new EGP 6 bn export subsidy framework
The government will begin implementing today the promised EGP 6 bn new export subsidy framework after holding several meetings with the export councils, reports Al Mal. Exporters have been awaiting clarity on how the government is planning to implement the new program, which will see some EGP 2.4 bn (40%) of the EGP 6 bn disbursed as cash subsidies, EGP 1.8 bn (30%) through tax and payment discounts, and the remaining EGP 1.8 bn (30%) spend by the Export Subsidy Fund to “build up Egypt’s export capacities.” We have a rundown here on the new framework, which the government announced in July.
Gov’t also says it’s on track to make good on overdue payments: The Finance Ministry is currently in the process of giving exporters EGP 800 mn-worth of tax breaks to settle overdue arrears under the old program, and said EGP 2 bn will be settled soon through the four new ways announced in July, alongside tax breaks. This report came after Finance Minister Mohamed Maait said last week the ministry has already disbursed EGP 1.4 bn over the past few weeks. The Egyptian Businessmen’s Association estimated last year that the government could owe exporters EGP 9 bn. Others in the field have put the figure even higher.