Egypt Takes a Major Step in Attracting Foreign Investors
Egypt has taken a significant step in making its economy more appealing to foreign investors. The Cairo government has unified all government taxes into a single one. The decision, which is still a draft law, has sparked positive reactions within the business community, eliminating administrative complexities and indirect financial burdens resulting from multiple taxes imposed by 76 government agencies**
The new law will combine environmental permits, civil protection taxes, circulation licenses, and other taxes into a unique tax, treated as an additional tax deducted directly from companies' annual profits. This new law will include a payment mechanism, ensuring transparency and minimizing the risks of arbitrary evaluation and duplication between agencies.
Tunisia, a competitor in attracting foreign investment, must also take concrete measures to simplify the lives of promoters
Egypt's competitor, Tunisia, must also take concrete measures to simplify the lives of project promoters. While digitalization has made significant progress, what is lacking is the simplification of texts. We can score precious points in terms of quality of the business climate. We can thus at least bridge the infrastructure gap with other countries in the region. If we fall back on all fronts, we should not expect a revolution in foreign investment figures.
