Egyptian Finance Minister Mohamed Maait announced Tuesday that six billion LE has been allocated in the new budget to support and develop exports, a show of the government’s keenness to support the export sector in facing economic crises.
He added that five billion LE was also allocated to support reducing the price of electricity for the industrial sector.
This will contribute to stimulating investment and increasing the participation of the private sector in various economic activities, preserving the country’s safe economic path.
Maait stressed the industry’s continued support to transform these current global crises into development opportunities that support the Egyptian economy.
He said this will contribute to enhancing the state’s production capabilities in various sectors, achieving food security, expanding the export base, and increasing the competitive strength of Egyptian products in international markets.
The minister added that LE1.1 billion has been also allocated in the new budget to complete the installation of 13 industrial complexes across the nation to provide a stimulating infrastructure for owners of small, medium and micro enterprises, and create more job opportunities in a manner consistent with the simplified tax treatment prescribed for these projects.
Supporting domestic production
During the past few years, several tax and customs incentives were approved to deepen domestic production, lay the foundations for industrial development, and deepen local manufacturing, he said, especially in the fields of agriculture and industry.
This aims to achieve self-sufficiency in food and strategic commodities, and reduce the inflation bill imported from abroad.
He pointed out that the recent adjustments in the customs tariff include reducing the “import tax” on more than 150 types of production requirements and inputs to stimulate the national industry.
The cabinet agreed that the state treasury would bear the value of the real estate tax due on real estate built for the industrial sectors for a period of three years, starting at the beginning of 2022, at an expected total cost of LE 3.3 billion, thereby supporting the state’s efforts at localizing the industry,
He said that three billion LE was allocated within huge financial incentives that were announced to deepen the auto industry, starting from the new fiscal year.
“We will continue to pay the delayed export burdens to the exporting companies; the total amount we have disbursed to exporting companies so far amounted to about LE 35 billion, and the new phase of export support will be launched during the coming period,” he explained.