Kadry: A mechanism shall be drawn up to directly transfer the ratio allocated for development of governorates and squatters from the real estate tax proceeds.

Labib: joint committee and work groups f...

Kadry: A mechanism shall be drawn up to directly transfer the ratio allocated for development of governorates and squatters from the real estate tax proceeds. Labib: joint committee and work groups from three ministries to monitor implementation of the agreement. Iskander: A national plan for enhancing the cultural environment to provide an environmentally and healthy safe life for citizens. Prime Minister, Engineer Ibrahim Mahlab, witnessed signing ceremonies of the cooperative protocol entered into between Ministries of Finance, Local Development, Urban Development, and Governorates to organize the use of 50% of real estate tax proceeds for squatters and governorates development. The protocol is signed by Minister of Local Development, General Adel Labib, Minister of Urban Development and Squatters, Laila Iskander, and Minister of Finance, Hany Kadry. The protocol aims – as said by Minister of Finance – to find an explicit mechanism to transfer the real estate tax proceeds’ portion allocated to each governorate in Egypt, as well as the portion of Ministry of Urban Development and Squatters, pursuant to article 28 of Real Estate Tax Law no. 103/2012. This article states that the ratio of 25% of tax proceeds shall be allocated for squatters development, in addition to the ratio of 25% from the taxes collected from each governorate to develop different governorates. The protocol enhances the concept of institutional partnership and mutual cooperation among the State’s institutions, through the mechanisms that are based on strategic partnerships to modernize and promote the efficiency of public services and contribution in supporting the overall development efforts adopted by the government. Minister of Finance declared that the Ministry will periodically announce the real estate tax proceeds and the value of the transferred amounts to the different governorates and Ministry of Urban Development and Squatters. In addition to establishment of a database involves the detailed plan of development processes, the actual amount of proceeds used, the achieved projects, the monthly expenses and record work progress. He added that the three ministries, pursuant to the protocol will be committed to put a mechanism to transfer the tax proceeds’ portion of both the ministries of Local Development and Urban Development, either quarterly or semi-annual, and funds can be directly pumped in the transferred entity accounts. Provided that Ministry of Finance shall follow up the implementation of spending to ensure consistency of the implemented projects against national plans priorities. As well as both Ministries of Local Development and Urban Development shall participate in preparing the related studies, put development plans and its objectives, and shall participate in drawing up short and long term plans, giving them priority of public spending to achieve those aims. Minister of Urban Development, General Adel Labib, disclosed the agreement to form a joint committee from the three ministries to manage and monitor the protocol execution. The committee will present a regular report to the competent authorities, put the protocol executive plan and compose work groups. He said that the protocol targets to put an explicit mechanism for using the real estate tax proceeds to accomplish social and economic impact in squatters and governorates development, in order to make a real development for the favor of all citizens. He added that Ministry of Local Development spares no effort in developing local administration units and improving the services presented to citizens all over the Republic, through cooperation and coordination with the concerned ministries and public entities. Minister of Urban Development, Laila Iskander, confirmed that squatters development processes include replacement and renovation of those areas, alongside establishment of integrated utilities and services residential areas rather than dangerous slums, and development of unplanned areas. All the aforementioned shall be for the favor of the society, as well as tax payer shall see his contribution causing improvement in the country’s conditions, and low income sects shall recognize that the Sate considers their interests, and that the higher income citizens perform their obligations towards their society. She said that Ministry of Urban Development works to enhance cultural environment in order to provide an environmentally and healthy safe life for Egyptians. To achieve this vision, the Ministry prepares an overall national plan to face the problem of squatters, including rehabilitation and infrastructure facilities, improve life and public health for its residents. She referred that Ministry of Finance assists in providing the necessary financial resources to execute this plan during a fixed period ensuring the achievement of sustainable development.