On 11 July, wrapping up the parliamentary session for 2022-23, Speaker Hanafi Gebali said the House had “spared no effort in laying down the integrated legislative infrastructure necessary for the state to achieve its development objectives and meet the aspirations of citizens for a decent life.”
“Through it 25 committees, the House has played a key role in formulating and crystallising a comprehensive strategy for this stage of economic reform, reviewing pressing social issues and everyday concerns of ordinary citizens and reinforcing the exercise of democracy.”
During the last nine months, 188 laws dealing with economic, financial and budgetary matters have been passed.
Ahead of the three-month summer recess, the House gave its final approval to a bill eliminating tax exemptions for state-owned entities and affiliated companies.
“The law aims to put state-owned companies and private businesses on an equal footing,” said Chairman of the House’s Budget Committee Fakhri Al-Feki. He added that “the draft law is an important step that aims to create a more investment-friendly climate and support free and fair competition in the local market.”
The draft law states that tax exemptions granted to administrative units, local councils, and fully or partially state-owned entities will be eliminated. State companies involved in projects that relate to basic infrastructure and national security, however, are exempt from the new law’s provisions.
On parliament’s final day, MPs approved amendments to the 2017 investment law. The changes aim to improve the investment climate and attract greater FDI inflows by granting new incentives and expanding eligibility for the so-called Golden Licence. The incentives will be available retroactively, covering projects established before the 2017 law.
The final session also witnessed the passing of a draft law establishing the Egyptian Intellectual Property Rights Authority. The new bill unifies the plethora of institutions responsible for regulating intellectual property rights, creating a body that will also be responsible for advancing technological innovation, scientific research, and cultural development. MPs also approved a draft law setting up a LE1 billion fund to help people with disabilities join the job market.
A draft law establishing a National Alliance for Civilian and Development Action was passed. “The legislation will allow the alliance to establish development projects and social safety initiatives in collaboration with NGOs and civil society organisations,” said Abdel-Hadi Al-Qasabi, the head of parliament’s Social Solidarity Committee.
That economic legislation dominated parliament’s 2022-23 season “is natural given the government’s keenness to cooperate with MPs to mitigate the negative impact of soaring inflation triggered by the war in Ukraine,” Wafdist MP Ayman Mehaseb told Al-Ahram Weekly. He cited approval by the House of presidential initiatives raising the minimum wage for public-sector workers, hiking pensions by 15 per cent and increasing the allocations to social protection programmes as evidence of this cooperation.
Mustafa Salem, deputy chairman of parliament’s Economic Committee, said supporting local industries and increasing foreign exchange inflows had been high on parliament’s 2022-23 legislative agenda.
“MPs approved a draft law setting up a new regulatory body, the Supreme Council for Vehicle Manufacturing, to formulate policies and establish a new fund to offer incentives to companies involved in assembling environmentally friendly cars,” said Salem. “MPs also approved a legislation that allows Egyptian expats to import tax-free cars.”
Changes to the citizenship law make it easier for foreigners to gain citizenship in return for purchasing assets worth $300,000 or investing $350,000 or more in local projects. The goal of the amendments is to attract greater hard currency inflows.
Parliament also approved amendments to the civil status law obliging citizens to obtain national ID cards at 15 rather than 16 years of age.
To help unlicensed industrial projects join the formal economy MPs passed a law making it easier for such projects to be licensed. According to Salem, the House also approved preferential taxes for contractors involved in building Egypt’s Al-Dabaa nuclear power plant. The goal is to speed up building of the power plant and encourage foreign companies to take part in the construction.
Amendments opening up the river transport sector to private investment and placing the River Transport Authority in sole charge of licensing river boats, Nile cruises, and floating units were approved.
Following the passage of new laws, illegal construction on agricultural land is now penalised by a fine that can range between LE500,000 and LE10 million, with violators facing the possibility of up to five years behind bars.
MPs also nodded through a new law requiring dog owners to obtain licences. Head of the Local Administration Committee Ahmed Al-Sigini said the law stipulates that dog owners, who must be 18 years or older, license their dogs within six months of the law being passed. Licences will cost between LE1,000 and LE15,000. Under the new rules failure to obtain a licence carries a minimum fine of LE10,000. Owners of dogs that attack people can also face fines of up to LE4 million plus jail time.
It is notable, however, that parliament’s most recent legislative season ended without discussion of the unified insurance bill, the labour bill, the unified building code, the local administration law and the personal status law, despite some of the laws having been in the pipeline for two years.
* A version of this article appears in print in the 20 July, 2023 edition of Al-Ahram Weekly
Short link: