Minister of Finance, Mr. Hany Kadry Dimian : easy tax system to support small enterprises and controlling customs outlets to protect the national industry 

Prime Minister Eng. Ibrahim Mahlab , ensured that the government exerts great efforts to achieve a major economic takeoff , as Egypt is in the process of preparation of the economic summit conference , as it seriously works to succeed .He indicated that the first priority of our economy shall be directed to small and medium industries that have great economic and social impacts, he also mentioned that Egypt still suffers from the high ratio of unemployment as the only solution shall be creating more job opportunities ,all the afore mentioned was during the regional conference for supporting  small and medium corporations’ financing opportunities in the Arab countries , organized  by the CBE on 15^th January .

In his speech delivered in the regional conference for supporting financing opportunities of small and medium corporations in the Arab countries, the Prime Minister also added that this is the third conference addressing economic issues attended by him this week, ensuring that Egypt today is passing the bottleneck to the starting point.

Eng/ Ibrahim Mahlab resumed that Egypt recently within an important phase of its history as the last step of the roadmap, i.e. the Parliamentary elections, that will ensure completion of the essential infrastructure of the constitution, the impartially elected president then the elected parliament, establishing the modern democratic civil state.

Mahlab also emphasized that it is necessary to promote our domestic resources and Arab cooperation, as Egypt is an important axis that politically, economically and socially affects the whole world, it also has a great role in establishing the region’s social peace and fighting terrorism.

Minister of Finance, Hany Kadry Dimian confirmed that the government supports small and micro industries by adopting an easy tax system for these enterprises, including taxes on income and activities to promote such enterprises away from the currently complex procedural systems that raise concerns of youth.

Minister of Finance also added that such tax amendments promoting small enterprises include amendment of sales tax law by raising the registration limit excluding these enterprises out of the current tax system, noting that the optional registration shall be allowed for the owners of such enterprises to join the new tax system.

Minister of Finance also indicated that the Ministry seeks to support customs system to eliminate illegal trade practices such as undervalued smuggled goods competing small enterprises that incur high costs and impeded by problems, at least it is required not to face such illegal practices , he also indicated that the Ministry’s role is to protect the same through controlling customs outlets by modern means as well as protecting Egyptian markets and corporations from smuggling and imposing deterrent penalties on smugglers .

Dimian requested corporations to register in the tax system and to be involved into the formal sector to reserve the state’s rights, he added that a law to qualify small and medium enterprises shall be issued.  

The governor of the CBE , Mr. Hisham Ramez confirmed that the CBE has prepared many solutions including providing financing and banking services for small and medium enterprises , as banks shall be exempted from reserve limits as long as they provide loans for such enterprises and establishment of specialized departments for these enterprises as well as instructions of special treatment for capital requirements , reducing fees and facilitating establishing small branches to deal with such small and medium enterprises by the lowest percentage of capital allocation as well as granting benefits for upper and lower Egypt’s governorates .

He also said that banks don’t provide financing for such small and medium enterprises, as such enterprises loans achieve more profits, as our point of view considering that loans shall be provided for these enterprises to support macroeconomic.

He also added that banks apply twice a year for submitting in such corporations, as there is a great turnout on investment certificates estimated at 64 billion EGP in 8 days, of which 27 billion EGP are fresh money, indicating that this mechanism helps in attracting new customers to the banking sector.