Parliamentarians also called for amending the Public Procurement Law to eliminate direct contracting.
Parliamentarians also called for amending the Public Procurement Law to eliminate direct contracting - File Photo
Egypt's House of Representatives, under the leadership of Chancellor Dr. Hanafi Gabali, has concluded its general sessions of the third legislative term by approving a package of important economic legislations.
At the forefront of these laws are amendments to the Investment Law No. 72 of 2017 and the government's proposed law officially abolishing exemptions granted to state entities in investment and economic activities.
Parliamentarians also called for amending the Public Procurement Law to eliminate direct contracting.
The proposed law aims to revoke all tax and fee exemptions granted to state entities engaged in investment and economic activities. This move seeks to improve the investment climate and encourage fair opportunities for all investment and economic activities within regulated financial transactions.
It supports free market economies and creates a competitive investment environment that encourages investors to inject further investments, thus contributing to the growth of the national economy and improving its indicators.
During the general session, the House of Representatives also approved the law for financing, designing, constructing, managing, operating, maintaining, and delivering Container Terminal 2 at Port Said East for the Suez Canal Container Company (an Egyptian joint-stock company).
Additionally, they passed the law granting the commitment to design, construct, manage, operate, maintain, and deliver a multipurpose station at Port Said East to Sky Ports Co. (under establishment) under the Special Economic Zone system. Furthermore, a law establishing the Egyptian Intellectual Property Authority was also enacted.
Dr. Ayman Mahsoub, Chairman of the Investment Priorities Committee in the National Dialogue and member of the Planning and Budget Committee in the House of Representatives, confirmed that the proposed law upholds the principle of competition, as demanded by investors during the national dialogue sessions. He noted that with this law, there will be equality between the public and private sectors.
Member of Parliament Mohamed Atiya El-Fayoumi also emphasized that the proposed law achieves tax neutrality, which is a crucial aspect of competitive neutrality. He added that although it is not sufficient, it is a step towards canceling any exceptions in the Public Procurement Law to ensure transparency in competition and free markets.
The approval of the economic legislations by Egypt's House of Representatives demonstrates the government's commitment to enhancing the investment climate and promoting a level playing field.
These reforms aim to attract both domestic and foreign investments, strengthen economic growth, and foster fair competition between public and private sectors.
By eliminating exemptions and promoting transparency, Egypt is taking significant strides towards a more open and inclusive business environment.
