Good afternoon, friends, and happy hump day. While the weather seems to be cooling down, the news cycle is heating up.

THE BIG STORY TODAY-

The Finance Ministry is planning to introduce new incentives to encourage local and foreign e-commerce platforms to join the tax system, as part of a major push to tighten its grip over the e-commerce sector, senior government sources told EnterpriseAM. There are no plans to introduce taxes for uncharged services, we were told.

REMEMBER- Egypt’s Tax Authority subjected global tech companies to a simplified tax registration system, and required them starting FY 2023-2024 to charge and remit 14% value-added tax (VAT) on their activities in Egypt. The current VAT law covers all transactions conducted through electronic distribution platforms, which include websites, digital portals, e-commerce stores, and any other online marketplaces that sell products or services to customers.

THE BIG STORY ABROAD-

It’s another busy afternoon in the global press, with the recognition of Palestinian statehood still leading the headlines. France became the latest country to recognize Palestine at a UN summit in New York on Monday, joining the UK, Canada, Australia, and Portugal. “The time has come to end the war in Gaza, the massacres, and the death,” French President Emmanuel Macron said. Monaco, Malta, and Luxembourg have also declared support for Palestine, with more nations expected to follow suit as the UN General Assembly kicks off later today.

Defying other European countries, Germany and Italy remain firmly opposed. The former says recognition should only happen at the end of “the political process,” but has warned against annexations in Israel-occupied territory in the West Bank. Italy, however, outright considers recognition “counterproductive,” as thousands of pro-Palestine protests erupt across Milan and other Italian cities. (BBC | Guardian | CNN | Reuters | Axios)

Despite the barrage of statements from Western countries, “recognition changes little on the ground,” with Gaza hospitals “days away from shutdown” and residents continuing to flee as Israeli tanks advance into the city center. The escalating ground offensive has exacerbated the health crisis, especially as fuel shortages threaten hospital operations, “[exposing] the lives of patients and the wounded to certain death,” Gaza’s Health Ministry said. (BBC | ABC)

MEANWHILE- Evacuations are underway in China, with schools and businesses shut down in at least 10 different cities as Typhoon Ragasa approaches the southern coast of the East Asian nation. Hong Kong has raised its typhoon warning ahead of the storm’s arrival. Ragasa — labelled the most powerful storm on Earth in 2025 by the Philippines’ meteorological agency — has been named the “King of Storms” by China’s meteorological agency, and is set to maintain super typhoon intensity as it inches closer to the coast. (Reuters | BBC)

☀️ TOMORROW’S WEATHER- Enjoying the breeze? It’s here to stay for now. We’re in for cool temperatures in Cairo with the mercury set to peak at just 31°C before cooling down to 20°C, according to our favorite weather app.

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