8 - 14 August 2002 Issue No. 598 Economy	Current issue Previous issue Site map
Published in Cairo by AL-AHRAM established in 1875		Recommend this page

Accelerating exports

RECENT amendments to a number of articles of the tax and customs law aimed at providing incentives to exporters clearly indicate that the revival of the country's export activity is presently high on the government's priority list.

Under the Ministry of Finance's latest amendments to Articles 98, 102 and 103 of the customs law, which deal with the tax rebate and drawback systems, taxes on exports will be decided by the exporters rather than by the customs department as was the practice.

Finance Minister Medhat Hassanein said that the new amendments were just and efficient, and will simplify exporters' dealings with the customs authority. He also said that the reforms were necessary in order for Egypt to keep at pace with world market developments and to fulfill its regional and international commitments under the EU/Egypt Association Agreement and the GATT (General Agreement on Trade and Tariffs).

More reforms are apparently in the pipeline to reduce the number and categories of tariffs imposed on exporters. "This is part of the comprehensive reform strategy of the financial system in Egypt," Hassanein said.

High speed rail link shelved

PREFERRING to redirect finances to the railways reform plan, Egypt has cancelled a joint project with Spain for an express rail link between Alexandria and Aswan. According to the agreement, signed in July 2000, the cost of the project could have reached $2.8 billion.

The decision reflects a change in the Transport Ministry's priorities in the aftermath of the Upper Egypt accident last February when over 360 passengers were killed. The new rail link was intended to serve wealthier passengers, while the railways reform plan is aimed at improving service for lower income customers.

However, Egypt's withdrawal from the project will not end cooperation with the Spanish. They are still partners in the huge SEMAF project to produce railway wagons. Overall, Spanish investments in Egypt are assessed to be about $2.75 billion and are expected to increase to $5 billion by the year 2005.

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