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Egypt’s cabinet approves end to tax exemptions for state entities but concerns remain

Published

2 years ago

June 21, 2023

Egypt’s cabinet has opted to stop tax exemptions for state entities as it approved a draft law to that effect on Wednesday.

According to a statement by the cabinet, “the approval is part of the Egyptian state’s desire to improve the investment climate and support private sector participation in various economic activities.”

The elimination of exemptions would be put into effect “without prejudice to… exemptions prescribed for works and duties relevant to the necessities of defending the state and protecting national security,” the statement said.

Egypt is trying to launch economic reforms to accommodate private sector participation. The law however appeared to retain at least some privileges enjoyed by the army despite concerns by the private sector that state-owned enterprises, including those owned by the army, use tax exemptions and other privileges to compete unfairly.

The military and other security organizations are free from income taxes under a 2005 law, from real estate taxes in a 2015 decree, from value-added taxes on goods and services needed for armament, defense, and national security under a 2016 law, and from import tariffs under a 1986 statute.

The International Financial Corporation (IFC), a department of the World Bank, promised last week to provide Egypt with economic consulting services. The IFC declared that it would give Egypt strategic guidance on its objectives to increase private sector participation in its economy.

The country’s economy has been in decline in recent years. It has devalued its currency by half since March 2022 after the fallout from Russia’s invasion of Ukraine exposed its economic vulnerabilities.

Related Topics:Egypt Featured Tax Exemption

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Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”