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Monday, 14 November 2022

FX-for-tax cuts plan earns Senate approval

Senators approve FX-for-tax cuts incentives: The Senate has approved legal 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 changes are part of a package of measures designed to stimulate private investment and bring more FX into the country.

What’s next: The bill will be referred to the House of Representatives for discussion.

FROM THE HOUSE-

The government is one step closer to covering contractors’ losses: The House Housing Committee yesterday gave initial approval to amendments that would see the government pay compensation to contractors who have suffered losses on the back of recent economic reforms such as the EGP float. The Senate green-lit the move at the end of October.

What’s next: The bill will make its way to the plenary session of the House of Representatives for a vote.

More to come: Housing Committee Chairman Emad Hammouda said the committee would discuss a raft of new construction bills in the coming period, including new government-drafted amendments to the Unified Building Law.

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