The Ministry of Finance announced it will start disbursing export subsidies for small companies without tax clearance certificates, given that they will submit these certificates before the end of June, according to a ministry statement on Monday.
Egypt’s economic ministerial committee, headed by Prime Minister Mostafa Madbouly, earlier agreed to disburse export subsidies for small companies whose dues are EGP 5m or less on products they sold abroad before 1 July 2019.
Minister of Finance Mohamed Moeit the companies will still receive their dues from government agencies and the Export Development Fund (EDF). The disbursement mechanism of dues, which he agreed to during a meeting with a number of businesspeople, will take place in three instalments.
The meeting discussed suggestions to mitigate the effects of the economic crisis arising from the emergence of the coronavirus pandemic.
Moeit added that these suggestions will be studied and discussed with Prime Minister Madbouly.
He pointed out that some proposals require legislative amendments, such as postponing the deadline for submitting company tax returns for two months, and exempting the real estate taxes on factories.
The minister also said that the government has already made amendments to the Real Estate Tax Law, which are currently being presented before the House of Representatives. This includes factories being exempted from real estate tax.
He concluded that there are currently sensitive economic conditions worldwide that require global unity among governments and states to overcome the current difficulties.