Egypt Cabinet Approves Ending State Enterprise Tax Privileges

A crane lifting stones is pictured behind camels resting with their trainers by the Pyramid of Menkaure (or Menkheres, built in the 26th century BC) at the Giza Pyramids Necropolis, west of Cairo, on January 29, 2023. (AFP)
A crane lifting stones is pictured behind camels resting with their trainers by the Pyramid of Menkaure (or Menkheres, built in the 26th century BC) at the Giza Pyramids Necropolis, west of Cairo, on January 29, 2023. (AFP)
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Egypt Cabinet Approves Ending State Enterprise Tax Privileges

A crane lifting stones is pictured behind camels resting with their trainers by the Pyramid of Menkaure (or Menkheres, built in the 26th century BC) at the Giza Pyramids Necropolis, west of Cairo, on January 29, 2023. (AFP)
A crane lifting stones is pictured behind camels resting with their trainers by the Pyramid of Menkaure (or Menkheres, built in the 26th century BC) at the Giza Pyramids Necropolis, west of Cairo, on January 29, 2023. (AFP)

Egypt's cabinet approved regulations on Wednesday that would abolish many tax and fee exemptions for state-owned enterprises, fulfilling a key condition the IMF set in a $3 billion agreement signed a year ago.

The cabinet approved the law in June but had yet to draw up the executive regulations needed for implementation.

The International Monetary Fund in a $3 billion financial support agreement signed in December 2022 urged Egypt to level the playing field between the private and public sectors.

The agreement fell into abeyance after Egypt did not follow through on other commitments, including allowing its currency to move in response to market forces, to move quickly to sell state assets and to reduce the government's role in the economy.

The new regulations "apply to all investment or economic activities undertaken by state agencies." These include "units of the state administrative apparatus, local administration units, national public, service and economic bodies and agencies that have special budgets," the cabinet said in a statement.

The regulations do not apply "to military work and the requirements for defending the country or protecting national security," the cabinet statement said.



Riyadh and Tokyo to Launch Coordination Framework to Boost Cooperation

Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)
Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)
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Riyadh and Tokyo to Launch Coordination Framework to Boost Cooperation

Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)
Saudi Ambassador to Japan Dr. Ghazi Binzagr. (Asharq Al-Awsat)

Saudi Arabia and Japan are close to unveiling a higher partnership council that will be headed by the countries’ leaderships in line with efforts to build a partnership that bolsters the technical transformation and joint research in clean energy, communications and other areas, revealed Saudi Ambassador to Japan Dr. Ghazi Binzagr.

He told Asharq Al-Awsat that the two countries will soon open a new chapter in their sophisticated strategic partnership.

The new council will be chaired by Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, and Japanese Prime Minister Shigeru Ishiba to push forward the Saudi-Japan Vision 2030, he added.

The council will elevate cooperation between the countries and pave the way for broader dialogue and consultations in various fields to bolster political, defense, economic, cultural and sports cooperation, he explained.

The two parties will work on critical technological partnerships that will focus on assessing and developing technologies to benefit from them, Binzagr said. They will also focus on the economy these technologies can create and in turn, the new jobs they will generate.

These jobs can be inside Saudi Arabia or abroad and provide employers with the opportunity to develop the sectors they are specialized in, he added.

Binzagr said Saudi Arabia and Japan will mark 70s years of relations in 2025, coinciding with the launch of Expo 2025 in Osaka in which the Kingdom will have a major presence.

Relations have been based on energy security and trade exchange with Japan’s need for oil. Now, according to Saudi Vision 2030, they can be based on renewable energy and the post-oil phase, remarked the ambassador.

Several opportunities are available in both countries in the cultural, sports and technical fields, he noted.

Both sides agree that improving clean energy and a sustainable environment cannot take place at the expense of a strong economy or quality of life, but through partnership between their countries to influence the global economy, he explained.

"For the next phase, we are keen on consolidating the concept of sustainable partnerships between the two countries in various fields so that this partnership can last for generations,” Binzagr stressed.

“I believe these old partnerships will last for decades and centuries to come,” he remarked.

Moreover, he noted that the oil sector was the cornerstone of the partnership and it will now shift to petrochemicals and the development of the petrochemical industry.