Cabinet ratchets up hoarding penalties and extends incubation period for companies: In their weekly meeting, ministers approved an amendment to deter the hoarding of strategic commodities and gave the nod to an extension to the grace period for companies and institutions to wrap up their paperwork, according to a cabinet statement.

#1- Tougher hoarding punishment: The Madbouly cabinet greenlit an amendment to the Consumer Protection Act, intensifying penalties on strategic commodities hoarding. Hoarding now merits at least one year in prison, and fines ranging from EGP 100k up to EGP 2 mn, or an amount equivalent to the value of the withheld commodities. Violators’ businesses will be subject to up to a six-month of closure, which could be extended into fully canceling their business licenses.

ICYMI: The Madbouly government earlier this week named seven commodities as “strategic commodities”, prohibiting traders from withholding them from the market.

#2- Extended grace period for setting up companies: Ministers also approved a draft law to extend the three-year duration given to companies and institutions to wrap up their establishment procedures for another three years. The extension was greenlit so that investment projects can benefit from the incentives listed in the Investment Law, which grant these projects 30-50% revenue tax deductions approved by the cabinet in July.

ALSO FROM THE MADBOULY GOVERNMENT-

Land plots for USD: The New Urban Communities Authority (NUCA) approved a decision to sell land plots to several companies for USD sourced from outside the country, according to a cabinet statement. The Authority has received “ many requests by Arab and foreign investors” to pay for state-owned land in USD, officials have said, as part of various initiatives to drum up hard currency amid a persistent shortage.

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