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Monday, 7 November 2022

Senate committee give preliminary approval for FX incentive bill

Senate committee gives initial approval to FX-for-tax cuts industrial plan: The Senate Financial and Economic Affairs Committee yesterday gave preliminary approval to draft amendments that would grant income tax breaks to investors who use FX to finance at least half of the cost of their projects. Under the proposed amendments to the 2017 Investment Act, companies would receive a tax cut of up to 55% on income generated by projects funded by FX. The approval comes a few weeks after cabinet approved the plan, which aims to attract more hard currency into the country and shore up its external position.

What’s next: Once the amendments are given a final approval by the committee, it will be referred to the Senate to be discussed and voted on. It would then be debated and voted on in the House of Representatives, which received the bill last week.

REMEMBER- Both the Senate and the House are on recess for COP27. Senators return on 13 November while MPs will hold their next session on 20 November.

PENALTIES FOR ILLEGAL BUILDING-

President Abdel Fattah El Sisi has signed into law amendments to the agriculture and civil status laws, and new firearms regulations, according to a decision published in the Official Gazette. Under the amendments:

  • People caught illegally building on agricultural land will face tougher fines, ranging between EGP 500k-10 mn and up to five years in prison;
  • The amendments to the Civil Status Law will see teenagers receive their national ID cards at the age of 15 instead of 16,
  • Getting a license to buy and sell guns will get harder under.

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