(AFP PHOTO / LOUISA GOULIAMAKI)
Economic decrees issued by interim President Adly Mansour have changed the country’s economic climate over the past 11 months, with the latest granting state employees a monthly bonus.
The latest of these decrees, issued 1 June, grants all state employees 10% of their basic wage each month, effective from July 2014.
In May, Mansour issued a presidential decree to amend certain provisions of the 80/2002 Anti-Money Laundering Law. The new amendments criminalise the financing of “terrorist individuals” and “terrorist groups”.
Mansour also issued a decree amending the Investment Law, prohibiting third parties from challenging contracts between the government and investors.
In December, Mansour issued a Presidential Decree permitting reconciliation in disputes between taxpayers and the Tax Authority. This will be applied to cases currently registered in court.
A decree amending provisions in the Stock Market Law now affords the finance minister power to determine the brokerage commission system, with input from the Egyptian Financial Supervisory Authority.
Some provisions in the Tenders and Auctions Law have also been amended, allowing “in urgent cases” the direct contract in the governmental auctions based on the agreement from the minister or the official in charge.
One month after taking office, Mansour issued a decree terminating a 2010 social security law, pointing to “lack of societal consensus” regarding the law. Mansour’s decree also states that a new article will be added to the current social insurance law which would ensure an increase in pensions owed to certain sectors.
The interim president has also played a role not only in issuing decrees, but in receiving bills drafted elsewhere.
The Ministry of Finance referred the draft budget on 26 May to the president for approval. The draft document cuts petroleum subsidies by approximately EGP 31bn, from EGP 135bn in the 2013/2014 budget to EGP 104bn, whilst increasing spending on health, education and scientific research.
The government has also approved imposing taxes on capital gains and dividends on the stock exchange and referred it to the presidency. Following the cabinet’s approval, the stock market experienced a significant loss of over EGP 15.99bn on 1 June.
Amendments made to the 2008 property tax law stipulate that properties falling under specific monthly rental values will be exempted from taxes. This exemption covers residential units rented for EGP 2,000 or less per month, and commercial units, which have a monthly rental value of EGP 100 or less.
Adly Mansour is due to cede his position as interim president in within days. Formerly the head of the Supreme Constitutional Court, Mansour has served in his post since his appointment on 3 July by former General Commander of the Armed Forces Abdel Fattah Al-Sisi following the announcement of the ouster of Mohamed Morsi one year after he was elected President.
