VenturesNow

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

Published

11 months 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

Click to comment

VenturesNow

Nigeria’s inflation hits 28-year high of 33.69% in April

Published

6 hours ago

May 16, 2024

Ifeoluwa Dada

Nigeria’s consumer inflation reached a 28-year high of 33.69% in April, up from 33.20% in March, according to statistics agency figures released on Wednesday.

President Bola Tinubu’s administration has slashed petrol and energy subsidies and devalued the local naira currency twice.

To manage pricing pressures, the central bank has hiked interest rates twice this year, including the highest hike in almost 17 years. The central bank governor has stated that rates will remain high for as long as necessary to reduce inflation. The bank will host another rate-setting meeting next week.

When compared to the previous year, the inflation rate in April 2024 was 11.47 percentage points more than in April 2023, when it stood at 22.22 percent. This implies that the headline inflation rate has increased dramatically during the last year.

According to the National Bureau of Statistics, food and nonalcoholic beverages remained the largest contributor to inflation in April. Food inflation, which accounts for most of the inflation basket, rose to 40.53% yearly from 40.01% in March.

Price pressures have left millions of Nigerians facing the biggest cost-of-living crisis in decades, as they fight to satisfy their most basic necessities.

Tinubu has offered a 35% salary increase for state personnel to alleviate pressure on government workers. To assist disadvantaged households, his government has resumed a direct cash transfer program and provided at least 42,000 tons of grains such as corn and millet.

VenturesNow

Uganda discusses power line to South Sudan with China’s Sinohydro

Published

1 day ago

May 15, 2024

Ifeoluwa Dada

According to the president’s office, Uganda is in negotiations with Sinohydro Corporation Limited of China to build a $180 million power transmission line that would enable Uganda to export electricity to South Sudan, which is severely short on energy.

Ugandan President Yoweri Museveni received a group led by Vice President of Sinohydro Corporation Yang Yi Xin on Monday as part of the negotiations, according to a late-morning statement from Museveni’s office.

The project, according to the statement, will entail building a new substation and expanding two existing ones in addition to building a 138-kilometre high-voltage transmission line to provide power to South Sudan.

“We are very much willing to help develop this project with the required finance if needed,” Xin was quoted as telling the president.

The statement stated that Museveni endorsed Sinohydro’s proposal to carry out the project. Uganda and South Sudan inked a power sales deal in June of last year, enabling Uganda to sell electricity to South Sudan.

To enable Uganda to export electricity to South Sudan, the two nations inked a power sales deal in June of last year. The Chinese firm is completing a $1.5 billion, 600-megawatt hydropower project on the River Nile in Northern Uganda that is meant to be the source for electricity exports to South Sudan.