Maait unveils new incentives to support industrial sectors
Updated 12/17/2023 12:19:00 PM
Arab Finance: The Egyptian Minister of Finance Mohamed Maait has announced several financial incentives and benefits to support the industrial sectors with top strategic priorities, as per a statement.
This includes allocating EGP 500 million for the country’s Environmentally Friendly Automotive Industry Fund (EFAIF), along with disbursing over EGP 50 billion so far since 2019 to support exporters.
Moreover, strategic industrial projects were exempted from several taxes for five years, with the possibility of refunding of up to 50% of the investment costs, provided that the project is executed in half of the agreed-upon period.
Additionally, a period of 45 days was set for repayment of value-added taxes (VAT).
Maait has also announced an investment incentive ranging between 33% and 55% of the taxes imposed on earnings from green hydrogen projects and strategic industries.
This is along with exempting most of the parts and components of mobile phones from customs duties to boost their localization in Egypt, in addition to waiving the unpaid VAT on machines and equipment instantly after starting production.
Furthermore, a deductible tax is allowed for micro, small, and medium-sized enterprises (MSMEs), while reducing taxes on imports of over 150 items of production requirements and inputs.
Maait added that the government is proceeding with providing EGP 160 billion in concessional financing to agricultural, industrial, and tourist production activities.
He noted that the state’s public treasury will bear the real estate tax levied on industrial projects for three years.
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