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Thursday, 23 January 2020

Cabinet approves partial property tax exemption for factories

CABINET WATCH- Cabinet approves partial property tax exemption for factories: The Madbouly Cabinet approved draft amendments to the Real Estate Tax Act that exempts idle land from property tax, according to a cabinet statement. The amendments also grant the cabinet the power to exempt land used by strategic industries and sectors. Finance Minister Mohamed Maait last week reiterated his plans to exempt factories from paying the tax after saying in September that manufacturers will be getting “preferential treatment” in property tax. It is believed that the Finance Ministry is working on a new formula for calculating property tax that would reduce the tax burden for the oil and gas sector, factories, and hotels.

The cabinet also approved during its weekly meeting:

  • The establishment of a service fund affiliated with the Public Enterprises Ministry to finance the restructuring of state-owned companies.
  • A USD 50 mn loan from the European Bank of Reconstruction and Development to improve energy use efficiency in the Gulf of Suez Petroleum Company.
  • A EUR 226 mn financing agreement between the Egyptian National Railways and Export Development Canada to buy 100 new train locomotives.
  • A USD 159k grant from the International Bank for Reconstruction and Development to support the Central Agency for Public Mobilization and Statistics in preparing statistics.

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