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Monday, 12 December 2022

Day 1 and the Public Shops Law is sparking controversy

Shop owners won’t be able to go legit without getting security clearance: Almost all shops required to go legit under the newly-introduced Public Shops Law won’t be granted licenses unless they receive security approvals, according to a decree published in the Official Gazette yesterday. The rules, issued by the Local Development Ministry, names 83 different commercial activities that will require the sign-off of security directorates before licenses are issued.

Reminder: The introduction of the Public Shops Law yesterday means that owners of informal shops now have one year to apply for commercial licenses or face fines and possible jail terms. Shop owners are required to apply to new licensing centers, which will process applications and grant licenses within 90 days. Licensing fees set by the law range from EGP 1k to EGP 100k depending on the size and location of the shop.

Among those needing security approval: Supermarkets, kiosks, coffeeshops, electronics shops, stationeries, hairdressers, gyms, hotels, nightclubs, jewelry shops, and many others.

The measures came in for criticism on the airwaves last night, with Rep. Freddy Elbaiady telling El Hekaya’s Amr Adib (watch, runtime: 11:44) that they would be counterproductive to persuading shop owners to apply for licenses. “The law and its executive bylaws are really good. The problem is related to the decree issued by the minister…this would ruin everything,” he said. The requirement would discourage young people from joining the formal economy due to the amount of time it could take to obtain licenses. “Such [security] approvals could take months…This is not the right time given the current economic conditions,” he said.

The ministry could rethink the move: Mohamed Al Fayoumi, spokesperson for the Higher Committee for Public Shops at the Local Development Ministry, sought to reassure viewers over the decree, telling Adib that the security requirement is not included in the bill’s executive regulations and is thus easy to amend. “I will contact the minister tomorrow and call for a meeting by the Higher Committee to review the measure,” he said, voicing agreement that some commercial activities should be excluded from the requirement.

The implementation of the law is also getting coverage from Al Hayah Al Youm (watch, runtime: 22:30) and Masaa DMC (watch, runtime: 13:36).

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