Three economy-related bills enacted by Parliament

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Wed, 18 Jul 2018 - 09:30 GMT

BY

Wed, 18 Jul 2018 - 09:30 GMT

FILE - Egyptian Parliament

FILE - Egyptian Parliament

CAIRO – 18 July 2018: Parliament approved in its general session on Monday three economy-related laws, including the income tax law, tenders and auctions law, and sovereign wealth fund law.

The Parliament gave a final approval to a bill amending article (42) of the income tax law No. 91/2005, stipulating to impose taxes up to 2.5 percent without any further reduction of the gross revenues on the disposal of constructed real estate.

It also approved the draft law on the regulation of public contracts, which was previously called tenders and auctions.

The draft law aims to achieve economic efficiency to obtain real value in exchange for public money spent, avoid unjustified disbursement to have a positive impact on the performance of the bodies subject to the provisions of the law, control and rationalize public spending and fight corruption.

The law is set to simplify procedures, facilitate operational action, achieve the goals of decentralization and establish the principles of transparency and equal opportunities, broadening and strengthening the base of competition.

It also seeks to create a balance between the government and the clients in terms of changing the culture of the contracting parties, thus achieving the government's objective of private sector development which plays an effective role in economic development.

The legislative framework of the draft law includes institutional arrangements to ensure consistency in the formulation, implementation and rehabilitation of public policies, creating a professional cadre that manages the functions of government contracts.

Another bill on establishing a sovereign wealth fund with a capital of LE 22 billion ($11.16 billion) was approved by Parliament.

“The notion of establishing a sovereign fund came late,” said Parliament Speaker Ali Abdel-Aal in Monday's session, adding that such funds are very important for the Egyptian economy.

Last April, the Egyptian Cabinet approved a draft law to establish a sovereign wealth fund to manage state assets with an issued and paid capital of LE 5 billion.

The planning minister said earlier that Egypt plans to launch its first sovereign fund by the end of the year and will start a promotional tour in the first half of the next year to stimulate private investment.

Partnering with the private sector, the fund will seek to attract domestic and foreign investment and build on the economic reforms launched by Egypt in 2016, including the flotation of the currency, cutting energy subsidies and introducing new taxes to cut the budget deficit.

Managing Egypt's Assets

Aiming to optimize state assets and manage public enterprises through their future float, the cabinet approved a draft law to establish a sovereign wealth fund to manage state assets with an issued and paid capital of LE 5 billion. But analysts warn it ne




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