Egypt to offer EGP 1.4 bln in tax relief for producers through 2026

Ahram Online , Tuesday 23 Jan 2024

The Egyptian government has pledged to pay EGP 1.4 billion (more than $45 million) annually, covering the real estate tax for the industrial, poultry, and animal production sectors until the end of 2026, Minister of Finance Mohamed Maait said on Monday.

A man carries a bale of wheat during the harvest in the village of Bamha near al-Ayyat in Egypt s Giza province some 60 kilometers south of the capital on May 17, 2022. Due to wheat shortages resulting from the war in Ukraine, Egypt is harvesting locally grown wheat to ensure self-sufficiency. AFP


The government aims to alleviate burdens on citizens and support producers and investors, Maait added.

He noted that these measures align with the country's comprehensive strategy to enhance economic activity, promote domestic industries, and bolster productive endeavors.

Minister Maait highlighted that these efforts are meant to address challenges resulting from escalating geopolitical tensions.

Furthermore, Anwar Fawzy, head of the Real Estate Taxation Authority (RTA), clarified that eligible sectors include metal industries, automobile manufacturing, cement production, iron and ceramic industries, and pharmaceuticals.

Fawzy emphasized that these benefits are contingent upon the activity being conducted within the formal economy and the effective utilization of the property for the specified purpose.

Egypt faces numerous difficulties resulting from geopolitical tensions and global crises, which have caused foreign exchange outflows and a severe shortage of US dollars, leading to crises in multiple sectors and a significant inflation rate.

In 2023, Egypt witnessed a surge in headline inflation rates, peaking at 40.3 percent in September, gradually subsiding to 35.2 percent by December.

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