FinMin moves to ease tax burdens on new manufacturing projects: The Finance Ministry has approved a decision to suspend tax payments on machinery, equipment, and production lines — whether complete, partial, or disassembled — until installation and inspection are completed, according to a government document seen by EnterpriseAM. The measure, approved by both the tax and customs authorities, is meant to ease cashflow pressures on manufacturers.

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Who’s eligible? The Customs Authority had initially proposed limiting the facilitation to companies working on national projects, but the Tax Authority confirmed it will apply to all factories and production units used for industrial production. Beneficiaries will be required to submit a written commitment to pay the suspended tax and any applicable additional tax once due.

What’s next? A ministerial decree is expected to be issued soon to formally activate the new measure, a government source told EnterpriseAM.

REMEMBER- The decision comes as the government steps up support for the industrial sector through a EGP 90 bn program of subsidized loans for industrial, agricultural, and renewable energy players, a percentage of which is earmarked for purchasing machinery and equipment.

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