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Tuesday, 3 November 2020

Are Egypt’s factories getting closer to a temporary real estate tax break?

Are factories getting closer to a temporary real estate tax break? That’s what Egyptian Federation of Investors Association Secretary Sobhi Nasr claims, telling Amwal Al Ghad that Finance Minister Mohamed Maait agreed to temporarily exempt factories from paying the property tax. The apparent decision, which still requires a formal sign-off from the Madbouly Cabinet to come into effect, follows months of lobbying from businesses. Maait reportedly agreed after a recent meeting of the newly-formed joint committee the ministry set up with business groups to address investor concerns.

Background: Industry has been calling for real estate tax relief since the beginning of the year, when the Investors Union urged the government to abolish the tax for factories. The push came on the heels of the cabinet signing off on amendments that exempt unused land from being taxed. These amendments were later signed into law in May. The Trade Ministry also said in September it was working on proposals that would exempt factories from real estate tax.

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