CAIRO: Egypt will have 337 billion EGP in new investments during the next fiscal year (FY) 2014/2015, compared to the 291 billion EGP investment of the current FY 2013/2014, Minister of Planning and International Cooperation Ashraf al-Araby said Sunday, Mubasher news gate reported.
“A 62.2 billion EGP of the scheduled investments will be governmental investments while the remaining 310.8 will be private sector investments,” Araby said.
Araby unveiled that the total amount of investments during the current FY upped to 95.4 billion EGP, including the two stimulus packages.
The Egyptian government pumped about 60 billion EGP into two stimulus packages as part of a long-term development plan to achieve sustainable development, boost Egypt’s infrastructure, and achieve social equity. The first stimulus package was pumped in October 2013 and the other in January 2014.
Over the scheduled 62.2 billion EGP of governmental investments in the FY 2014-15, the government will provide 50 billion EGP while the remaining 12.2 billion will be of public sector fund, Araby noted.
Araby’s expectations about investments do not reflect the large progression in the political and economic situations along with the supportive attitudes of Arab countries, economic experts and professor of economy at Cairo University Farag Abdel Fattah told the Cairo Post.
“With the development in political and economic situations and the roadmap, the will-pumped investments into Egypt’s economy will reach a trillion EGP,” Abdel Fattah said.
By applying economic and political stabilities, Egypt will be a promised and attractive country for investments especially with the low tax rates, high profitability rates, and low cost of wages and raw materials, he said.
Araby announced the Egyptian government will soon work to amend the exceptional three-year, five percent wealthy tax for those who earn more than 1 million EGP annually, Mubasher reported.
Such new amendments will allow gathering taxes in tangible assets which “does not mean that the wealthy tax should not be paid in cash,” Araby said.
For the tangible wealth tax, Abdel Fattah recommended the tax should be gathered in cash to provide the needed liquidity for public fund and to be exploited by the government in the urgent projects.