{"id":643455,"date":"2024-09-09T00:00:00","date_gmt":"2024-09-09T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/09\/new-tax-incentives-ahead-of-long-awaited-tax-policy-document-to-be-announced-wednesday\/"},"modified":"2024-09-09T00:00:00","modified_gmt":"2024-09-09T00:00:00","slug":"new-tax-incentives-ahead-of-long-awaited-tax-policy-document-to-be-announced-wednesday","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/09\/09\/new-tax-incentives-ahead-of-long-awaited-tax-policy-document-to-be-announced-wednesday\/","title":{"rendered":"New tax incentives ahead of long-awaited tax policy document to be announced Wednesday"},"content":{"rendered":"

Good morning, friends. <\/strong>Leading the local business news cycle this morning is news that the state\u2019s privatization program is back with a big-ticket exit from microfinance company Tamweely. But that\u2019s not all, with announcements stemming from El Sisi\u2019s visit to Turkey continuing to trickle in, new tax incentives set to be announced in the coming days, important energy updates, and more in today\u2019s issue.<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- <\/strong>New tax incentives<\/a><\/strong> are set to be announced within the coming days,<\/strong> Cabinet Spokesperson Mohamed El Homsani said in a cabinet statement<\/a> yesterday, following a meeting between Prime Minister Moustafa Madbouly and Finance Minister Ahmed Kouchouk. He added that the incentives are designed to \u201cprotect investors\u2019 rights and support them as they grow and expand their investment, production, and development activities.\u201d<\/p>\n

The incentives <\/strong>will be announced on Wednesday <\/strong>and will pave the way for the issuance of the government\u2019s <\/strong>long-awaited<\/a><\/strong> tax<\/strong> policy document,<\/strong> a senior government source told Enterprise, adding that they will also provide a solution for tax delays and disputes and facilitate the inclusion of the informal economy.<\/p>\n

Remember: <\/strong>We first heard about the new incentives back in August<\/a>, with the relevant authorities framing them as a way to streamline services, enhance relations between investors and the Tax Authority, and modernize the tax system through new technologies.<\/p>\n

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<\/a> #2- That proposed Cyprus-Egypt energy corridor <\/strong>you\u2019ve been hearing about<\/strong>, may actually<\/strong> happen: <\/strong>Egypt and Cyprus have \u201cbegun serious steps\u201d to reach an agreement to build a 90-km marine natural gas pipeline to connect the two countries, Asharq Business<\/a> reports, citing an unnamed government official. We also finally heard some concrete details on the pipeline, with the official telling the outlet that the pipeline will connect the Aphrodite gas field in Cypriot waters to the Zohr field\u2019s production facilities in Egypt, carrying 1 bn cubic feet of gas per day. <\/p>\n

Egypt\u2019s days of being a net energy exporter, for now at least, are firmly in the rearview<\/strong> mirror<\/strong> as declining local production and rising domestic demand led to energy shortages that led to rolling blackouts and a <\/a>USD 1.2 bn energy import plan<\/a> to keep the lights (and ACs) on for the hottest months of the year. Government source told Enterprise<\/a> earlier this week that LNG imports were set to continue during winter seasons and a pipeline with Cyprus presents a potentially cheaper and more reliable alternative. <\/p>\n

But feeding the national grid isn\u2019t the only aim<\/strong>, with the unnamed government official in addition to TotalEnergies officials<\/a> along with Oil Minister Karim Badawi and his Cypriot counterpart<\/a> last week all saying that the Cypriot gas could be liquified in Egypt and re-exported as LNG. Despite having energy supply gaps to fill at home, the government is keen to stave off arbitration claims from liquefaction plant shareholders if the plants remain inoperational for too long and is eager to use energy exports receipts to pay dues to foreign energy companies in the country that they want to carry on investing.<\/p>\n

The when: <\/strong>Even if an agreement is reached, it would be a few years before the gas starts flowing in, with Cyprus penciling in 2027 or 2028 as when they could start supplying gas to Egypt.<\/p>\n

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#3- Meds shortages are set to be \u201ccompletely over\u201d by the end of September, <\/strong>head of the Pharma Industry Chamber of the Federation of Egyptian Industries Gamal El Leithy told Asharq Business<\/a> on the sidelines of the Pharmaconex exhibition in Cairo yesterday, adding that shortages were currently around 85% resolved.<\/p>\n

Remember: <\/strong>Egypt has been suffering from a meds<\/a> and medical supplies<\/a> shortage all year that has seen the government and private sector explore a number of options to remedy the situation \u2014 including hiking drug prices<\/a> and offering loans<\/a> to manufacturers.<\/p>\n

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PSA-<\/p>\n

There\u2019s a long weekend coming up: <\/strong>The public and private sector are getting Sunday 15 September off as a paid holiday in observance of Prophet Muhammad\u2019s birthday, Prime Minister Moustafa Madbouly confirmed in a cabinet statement<\/a> out last night.<\/p>\n

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WEATHER- <\/strong>Temperatures are dipping below the mid-30s mark in Cairo today, with a high of 34\u00b0C and a low of 26\u00b0C, according to our favorite weather app. But summer hasn\u2019t ended just yet, with a heatwave beginning on Tuesday and peaking on Wednesday with a high of 38\u00b0C.<\/p>\n

It\u2019s only a couple of degrees cooler in Alexandria today<\/strong>, with a high of 32\u00b0C and a low of 24\u00b0C, but temperatures are also expected to rapidly pick up starting tomorrow and reach a high of 37\u00b0C, before gradually cooling throughout the rest of the week.<\/p>\n

** DID YOU KNOW that we now cover <\/strong>Saudi Arabia<\/a><\/strong> and the <\/strong>UAE<\/a><\/strong>?<\/strong><\/p>\n

** Were you forwarded this email?<\/strong> Tap or click here<\/a> to get your own copy delivered every weekday before 7am Cairo time \u2014 without charge.<\/p>\n

Missed this week\u2019s Inside Industry? <\/strong>In our weekly vertical exploring all things industry and manufacturing, we looked at the Industry Ministry\u2019s newly launched Egypt Digital Industrial Paltorm. Check out the story here<\/a>.<\/p>\n

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HAPPENING TODAY-<\/p>\n

<\/a> It\u2019s day one of the EFG Hermes London Conference:<\/strong> EFG Hermes\u2019s four-day annual conference in London will be kicking off today and offering its insights into \u201cwhat is shaping and moving the region\u201d and exploring important investments in our part of the world.<\/p>\n

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Get Enterprise<\/b> daily <\/h4>\n<\/p><\/div>\n

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n

Subscribe here<\/a> <\/div>\n<\/p><\/div>\n<\/p><\/div>\n

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HAPPENING TOMORROW-<\/p>\n

<\/a> #1- Inflation to creep down for the sixth consecutive month? <\/strong>Analysts, policymakers and the business community are eagerly awaiting inflation figures for August set to be released tomorrow by state statistics agency Capmas. The last set of inflation data showed the annual urban inflation falling to 25.7%<\/a> \u2014 its lowest level since December 2022 and a beating expectations by a whole 0.9 percentage points.<\/p>\n

The polls are in:<\/strong> Annual headline inflation is expected to have slowed 0.6 percentage points from the month before to 25.1%, according to a median forecast of 19 analysts polled by Reuters<\/a>. However, despite the decrease on an annual basis, some see inflation on a monthly basis picking up, with Naeem Holding forecasting a 1.24% m-o-m increase and HC Securities\u2019 Heba Mounir a 1.0% m-o-m uptick on the back of energy and transport price hikes. Meanwhile, core inflation is seen falling to 0.5 percentage points from the month before to 23.9% y-o-y, according to a median poll of five analysts. <\/p>\n

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#2- Kouchouk to address AmCham tomorrow:<\/strong> Finance Minister Ahmed Kouchouk will be speaking at AmCham\u2019s monthly luncheon tomorrow. The event \u2014 which will be moderated by Grant Thornton Managing Partner Kamel Saleh \u2014 will be held at Cairo\u2019s Nile Ritz Carlton from 1-4pm. Register to attend here<\/a>.<\/p>\n

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#3- Attention, techies: <\/strong>Tech Invest 5<\/a> is set to open tomorrow, with a long list of experts in in the tech field set to attend the conference. The event will bring together over 200 tech companies, 50 investors, and 20 incubators and accelerators. The conference is taking place next Tuesday in New Cairo. Get your ticket for the one-day event here<\/a>.<\/p>\n

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KUDOS- <\/p>\n

<\/a> The 2024 Paralympic Games in Paris wrapped up yesterday<\/strong> in a closing ceremony that saw the French national anthem play as Paris\u2019 Stade de France lit up with the red, blue, and white of the French flag. The day marks the end of a long summer of feats of sporting skill in Paris \u2014 and happily, Egypt is coming home with seven more medals<\/a>. <\/p>\n

President Abdel Fattah El Sisi <\/strong>extended his congratulations<\/a><\/strong> to the Egyptian winners at<\/strong> the Paralympic Games,<\/strong> who include:<\/p>\n