It’s a full House: After breaking for a three-month summer recess, MPs reconvene today to fully kick off the 2023-2024 legislative season. MPs are set to discuss and dissect 11 new government-drafted laws and a number of pending legislative amendments over the coming months. Herewith, your primer on the most business-relevant pieces of lawmakers’ agenda:

LABOR-

A new and improved Labor Law: The new draft law was shelved earlier this year as the Madbouly cabinet worked on redrafting it after it came under fire for favoring workers. Prior to the amendments, the new law was going to introduce new labor rights including legislating mandatory annual raises, caps on working hours, and longer maternity leave and notice periods, among other things.

GREEN HYDROGEN-

Green hydrogen incentives on the table: MPs will look into a number of green hydrogen incentives that will give companies VAT and income tax breaks. The companies need to implement their green hydrogen projects within five years and derive a certain percentage of their financing from foreign lenders to receive the incentives. Cabinet approved the incentives in May with the aim of stimulating Egypt’s nascent green hydrogen industry.

In detail: Companies will receive tax breaks of between 33-55% on income earned from the plants, and will pay no VAT on raw materials and machinery purchased for the projects. The facilities will be exempt from real estate tax, stamp tax, and a number of administrative fees. Companies will also be permitted to import and export without having their names in either of the registers.

TAXATION-

A new threshold for tax exemption: The personal income tax exemption threshold is set to rise to EGP 45k from EGP 36k, reducing tax for mns of public- and private-sector employees. If the exemption proposed by President Abdel Fattah El Sisi last month passes the House, this would mark the second time the exemption has been raised this year after the government lifted it from EGP 24k to EGP 36k in July. The proposed amendments to the Income Tax Law will be referred to the House Planning and Budget Committee.

INVESTMENT-

Opening up the importers register: The House will discuss a government-drafted decision allowing foreign investors to register as importers with 10-year licenses, making it easier for them to get goods and production inputs into the country without contracting with an Egyptian middleman.A joint committee featuring the Economic Affairs Committee and the Legislative Affairs Committee will discuss the decision.

Faster dispute resolution: The House will also look into law amendments that would expand the jurisdiction of economic courts, allowing them to take on and settle final appeals for higher-value cases than is currently allowed. It was among 22 moves to reform the business climate put forward by the Supreme Investment Council in May. The move was greenlit by the cabinet in June, but still needs committee approval before it can be ratified.

REAL ESTATE-

IDs for property: Over the summer, the cabinet approved a draft law that would give each property a unique digital ID on a centralized government database. The government would issue ID cards or plates for each property as part of a push to build a comprehensive property inventory and crack down on informal and unauthorized construction.

AND: The House will also discuss and vote on the amendments to 2008 Unified Building Law that ban construction outside authorized areas in cities, villages, and districts. The amendments were approved by the Senate late last year. The House will also look into the new building violation reconciliation law, which replaces a 2019 law designed to legalize informal buildings, and aims to prevent structures built next to the Nile from being legalized. The bill got the greenlight from the House Housing Committee last December.

SOCIAL SUPPORT-

Cost of living support: MPs will look into amendments to the Social Ins. Law granting pensioners and beneficiaries an EGP 600 exceptional cost of living payment. The amendments also grant public-sector employees a one-time bonus payout of EGP 600.The Manpower Committee will discuss and vote on the matter before it moves on to the general assembly.

CAR IMPORT SCHEME-

Expat car import scheme 2.0: The government is set to reopen its expat car import initiative for a three-month period under a draft law approved by the Madbouly cabinet. The scheme allows expats to receive full rebates on customs fees, VAT, and other taxes within five years of purchasing a vehicle, provided they pay them upfront in FX. The Planning and Budget Committee, the Economic Affairs Committee, the Legislative Affairs Committee, and the Foreign Relations Committee will form a joint committee to look into the matter.

REMEMBER: Some 167k Egyptian expats reportedly registered in the first round of the scheme, which raised around USD 900 mn — a little over a third of the USD 2.5 bn originally targeted by the Finance Ministry. The scheme was initially set to remain open for three months from November 2022, but was extended through to May 2023 as part of the government’s efforts to maximize FX inflows.

OIL EXPLORATION-

Four oil exploration agreements: The House will discuss four draft laws authorizing the Oil Ministry to contract Russia’s Lukoil to explore the Eastern desert for oil alongside state-owned GEPCO. the Kuwait Foreign Petroleum Exploration Company (Kufpec), a subsidiary of the country’s state oil company, will work with Pico Petroleum and state-owned Egyptian General Petroleum Corporation (EGPC) to explore for oil in the Geisum and Tawila West concession in the Gulf of Suez. Two of the draft laws concern ExxonMobil, which will partner with state gas firm EGAS to search for gas and crude oil in the offshore Cairo and Masry concessions in the Mediterranean.

REMEMBER: The cabinet greenlit the exploration agreements for these projects over the past few months. The agreements between ExxonMobil and EGAS and between Pico and Kufpee are worth some USD 319.5 mn. The draft laws will be referred to the House Energy and Environment Committee.

LOGISTICS-

Safaga Port’s management: A draft cabinet decision granted the Egyptian joint stock company Safaga Station Operating Company the right to build and develop the superstructure of the Safaga Port as well as handle its management, operation, and management. A joint committee including the Transport Committee and the Legislative Affairs Committee will discuss and vote on the decision.

** ALSO ON THE AGENDA- Amendments to the penal code that could apply tougher penalties for those found guilty of harassment or assault are also on House’s agenda over the coming months. There are also a number of draft laws on regulating drinking water, establishing a medical emergencies fund, regulating pharma practices, protecting senior citizen rights, and regulating child custody procedures.

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