Controversy in the "Economic Deputies" on the amendment of Article 12 of the Investment Law .. Know the details
The Economic Committee of the House of Representatives decided today, under the chairmanship of MP Ahmed Samir, to postpone the approval of the amendment of Article 12 of the draft law submitted by the government to amend some of the provisions of the Investment Law promulgated by Law 72 of 2017 by adding a final paragraph in Article 12 providing for the expansion of investment projects The list shall have the opportunity to enjoy the special incentives stipulated in Articles 11 and 13 in accordance with the rules and conditions to be determined by a decision of the Council of Ministers.
The Commission called for more controls to be put in place to ensure that serious expansions would be incentives rather than expansions.
Counselor Mahmoud Fawzi, adviser to the president of the council, said that the amendment of article 12 aims to inject new funds, pointing out that they should be visible and measurable, and follow the "expansion is enjoying the exemption."
Dr. Mohsen Adel, CEO of SAGIA, said that the concept of expansions as defined by the amendment is to add new assets to add production capacity and let the prime minister determine controls.
While MP Basset Fahmi considered that this matter can not be measured and may open the door to corruption, explaining that the assets can not be judged or identified and measured, stressing the need to link incentives to profits rather than assets because assets are elastic.
Dr. Hisham Amara suggested replacing them by adding new production capacities and agreeing with them in the concerns of MP Medhat Al-Sherif. He explained that specific concepts and controls must be defined so as not to use the term "new assets" as a rubber term to circumvent the law.
Al-Sherif insisted on the condition that the Minister of Finance approve the expansions that will enjoy exemption. He added: "There should be an officer in the law such as to calculate 25% increase in capital out of the existing project," pointing out that the need to have an assessment of expansion And linking them to a specific ratio.
Related topics
– Incentives
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