New batch of tax increases initially approved by the House of Representatives

Newsletter

30 May 2023

New batch of tax increases initially approved by the House of Representatives. The Egyptian House of Representatives has provisionally approved a series of tax and fee increases. This includes a rise in stamp tax on life insurance premiums to 1%, an entertainment tax ranging from 5-20% for entry to various recreational venues, a 3% tax on goods over $5 purchased at duty-free shops, and a 10% fee on alcoholic drinks purchases over one liter. Luxury imports, including various food items, electrical appliances, and toys, will incur a 10% customs duty. The departure fee for Egyptians will also double from EGP 50 to EGP 100. The Plan and Budget Committee of the Egyptian House of Representatives ratified these changes on May 24th. (Arab Finance)

Egypt Plans to Hike Electricity Rates in July, Say Officials.
The Egyptian government plans to increase residential electricity prices in July, as part of its initiative to gradually eliminate electricity subsidies, according to three government officials. The exact new rates haven't been decided yet, as they're linked to the exchange rate between the Egyptian pound and the US dollar. The pressures on the state's electricity sector are said to have risen due to the USD surpassing EGP 30. One proposed scenario involves higher electricity rates for heavy users, while keeping rates stable for those in the first consumption bracket. (Asharq Business)
Prime Minister examines the proposal to form 'Egyptians Abroad Investment Company.
Today, Prime Minister Dr. Mustafa Madbouly convened a meeting to evaluate the proposal put forward by several overseas investors for the creation of a company titled "Egyptians Abroad for Investment". The meeting was attended by Ambassador Suha Gendy, Minister of State for Immigration and Egyptians Affairs Abroad, Dr. Mohamed Farid, the Chairman of the Financial Regulatory Authority, and Hossam Haiba, the CEO of the General Authority for Investment and Free Zones. (Hapi Journal)
Banque Misr to obtain $260M loan from IFC to support MSMEs.
The International Finance Corporation (IFC) is planning to provide a $260 million loan to Banque Misr to support micro, small, and medium-sized enterprises (MSMEs), particularly women-led businesses. This loan includes contributions from IFC's Managed Co-Lending Portfolio Program and is expected to be finalized by June 30th. Additionally, the European Bank for Reconstruction and Development (EBRD) is also considering a $100 million loan to Banque Misr to further enhance its lending activities. (Arab Finance)
Al Gioshy Steel announces a reduction of 6 thousand pounds per ton of iron.
Tariq El-Gioshy, leader of the El- Gioshy Steel Group, announced that the price of a ton of iron in Egypt's local market has seen a decrease of about 6 thousand pounds, going from 40,000 to 34,000 pounds. He pointed out that Egypt produces about 13 million tons of iron annually, which surpasses the domestic consumption of 7 million tons. El Gioshy suggests that these figures present promising opportunities for boosting iron exports. (Hapi Journal)
Egypt's Mountain View acquires new land for EGP 3 billion by the end of 2023.
Amr Soliman, Founder and Chairman of the Board of Directors of the Egyptian firm 'Mountain View for Development and Real Estate Investment,' has revealed in an interview that the company plans to purchase additional lands valued at EGP 3 billion by the end of the year. Additionally, they plan to release a securitization portfolio worth EGP 1 billion. (East Economy)
Standard Chartered highlights increased financing threats encountered by Egypt.
Standard Chartered has raised a warning about forthcoming financial risks that Egypt may encounter. Some of these risks include considerable forthcoming payments to the International Monetary Fund (IMF) and maturing foreign bonds, both of which are causing concern among investors and credit rating agencies. As per a research note issued by the British bank last Thursday, Egypt is faced with an approximate annual repayment of $25 billion over the forthcoming four years (2024-2027). This includes $10.3 billion in payments to the IMF and €6.2 billion for Eurobonds over the next two fiscal years.. (Asharq Business)
Raya Call Center Services reports a 580% profit increase in Q1 2023.
The Raya Call Center Services Company's Board of Directors approved the Q1 2023 consolidated and independent financial results and business outcomes. The company's consolidated statements revealed a 580% surge in net profits, reaching 45 million pounds, a significant rise from 6.61 million pounds in Q1 2022. Total revenue for Raya Communications Services rose by approximately 76% over the three-month period, amounting to 443.98 million pounds, up from 252.17 million pounds in the same period of 2022. According to the company's independent financial statements, there was an enormous net profit growth of approximately 1165.8%, hitting 24.69 million pounds in Q1 2023, compared to a net profit of 1.95 million pounds in Q1 2022. (Al Mal)
Saudi investors explore industrial investment prospects with Governor of Port Said.
Port Said Governor, Major General Adel Al-Ghadban, today welcomed the Saudi investor Sheikh Saleh Muhammad Al-Khuwailid and his accompanying delegation at the governorate's main office. The purpose of the meeting was to explore concrete steps towards collaboration in the industrial sector, in sync with Port Said's exceptional industrial renaissance. The Governorate's Investment Advisor, Counselor Ibrahim Abdel Ghaffar, was also present during the discussions. (Al Mal)