The Ministry of Trade and Industry has decided to start in July 2010 applying the new methodology for granting export rebates (also considered a form of subsidy) using a value-added based system, reported local newspapers.
The current system grants exports a percentage of their value in rebates, according to Beltone Financial’s daily market report.
Different industries benefit from the export rebate system, including textiles and some manufacturing industries. The change in methodology aims to encourage the use of local components in production.
The export development fund, disbursing the subsidy, has a budget of LE 4 billion.
