The new subsidy export system based on the share of value-added will be implemented starting July 2010, Al-Ahram reported.
The budget of the Export Subsidy Fund will reach LE 4 billion in fiscal year 2010/11, compared to LE 3.7 billion in the current fiscal year, reported Al-Ahram newspaper quoting the Advisor to the Minister of Trade and Industry on foreign trade, Sayed Abul Qomsan.
The subsidy is currently disbursed based on a percentage given to each unit of exported product, Beltone Financial said in its daily market report.
The Industrial Development Authority is assessing the local component ratios in different factories to determine the amount of the export subsidy.
There are currently 26 subsidy programs operating under the Fund benefiting 1200 companies. Subsidies are extended to garments, household furnishings, textiles, agri-produce, food, engineering and chemical industries, in addition to pharmaceutical, cosmetic and leather products and marble, stated the Head of the Fund Mohamed Ragui.
Subsidies also cover 50 percent of transportation costs to Africa, China, Russia and Kazakhstan, and are extended to industrial zones in Upper Egypt.
