28 February 2013

Egypt: Cabinet Approves Sukuk Draft Law

The Cabinet approved on Wednesday 27/2/2013 a draft law on using Sukuk (Islamic bonds) and referred the legislation to the Shura Council.

Sukuk are essentially Islamic bonds in which the creditors buy shares in an investment or a project, meaning that the holder of a Sukuk bond is technically a partner in the enterprise and not a creditor.

During its meeting, the Cabinet also followed up the latest developments related to the announcement made by Prime Minister Hisham Qandil about the national program for social and economic reform.

Regarding the income tax, the Cabinet said that the monthly income of LE 7,000 would be exempted from that tax as of October.

Talking about the sales tax, the Cabinet made it clear that major amendments were enforced in that regard as a result of the societal dialogue.

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