Cabinet greenlighted a number of decisions during its weekly meeting, which covered education, tax facilities, and energy.

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#1- Debt management committee gets a facelift: Cabinet approved a draft decision from Prime Minister Moustafa Madbouly changing up the government committee in charge of managing debt and external borrowing. The changes will the committee solely focused on managing external debt and tasked with setting an annual maximum borrowing limit based on financial sustainability standards. The committee will also be responsible for discussing solutions to bridge the FX financing gap and implementing a rigorous governance system, similar to that used for concessional loans.

The personnel involved: The revamped committee will be headed up by the prime minister, and includes the ministers of finance, investments, and planning, CBE governor, as well as a representative from the General Intelligence Service and another one from the Administrative Control Authority.

#2- A new energy committee: The cabinet approved the establishment of a new committee — dubbed the Energy Planning Unit — that will be responsible for proposing strategies, policies, and plans for implementing energy solutions, as well as providing technical advice to the Supreme Council of Energy, preparing its agenda, and following up on its decisions. The committee will also prepare technical reports on energy projects and their efficiency.

The details: The committee will meet at least once every two weeks and will submit its recommendations to the Supreme Council of Energy for approval. The head of the unit will be appointed by Madbouly for a renewable three-year term and will include representatives from 15 ministries and government agencies, alongside three energy planning experts nominated by the head of the unit.

#3- Foundation year gets approval: The cabinet approved draft amendments to the law governing private and national universities that introduce the foundation year system. The amendments allow high school students who wish to enter a specific college without meeting admissions criteria to join a foundation year beginning academic year 2024-25. The foundation year will be available for candidates whose final grades are within 5% of the minimum qualifying score for admission and will take into account the student’s qualifications and the college’s capacity.

Foundation year? During this bridge year students can complete foundation courses through university-administered tests to receive bonus points that go toward their overall scores — the move allows students to enroll in colleges that they couldn’t get into with their high school scores alone.

DIG DEEPER- We took a look at how the education sector is preparing for the foundation year system in a Blackboard published last month.

AND- The cabinet greenlit three of the long list of tax facilities that were announced earlier this month:

#1- Unified Tax Procedures Law amendments: The cabinet approved a draft law amending the Unified Tax Procedures Law, which set out guidelines for tax reconciliation. The finance minister can now settle violations not subject to tax dues in exchange for legally stipulated compensation, while Income Tax Law violations can be settled in exchange for 12.5% of the amount not deducted, withheld, collected, or remitted.

#2- Resolution of existing tax disputes: The cabinet approved a draft law to settle the status of taxpayers and end existing tax disputes — part of its wider drive to ease the burden on taxpayers and unify and improve tax services.

Remember: Cabinet spokesperson Mohamed El Homsani previously said that all tax disputes predating the announcement will be settled as part of wider efforts to build trust with taxpayers.

#3- Additional tax incentives for businesses with an annual turnover of no more than EGP 15 mn: The government provided further details on its incentives for businesses with an annual turnover of up to EGP 15 mn, including exemption from development fees, stamp duties, and registration fees. The government will also grant eligible businesses additional exemptions that will apply to capital gains and dividend distributions, among others. The amendments will take effect starting January 2025.

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