Thu Sep 12 09:36:59 UTC 2024: ## Egypt Unveils Tax Facilitation Package to Boost Investment and Economic Growth
**RIYADH** – Egypt has announced a new tax facilitation package aimed at improving investor relations and addressing economic challenges. The package, unveiled by Finance Minister Ahmed Kouchouk, includes measures designed to streamline the tax system, boost productivity, and foster growth through increased production and exports.
The announcement follows a previous statement by Kouchouk’s predecessor, Mohamed Maait, who revealed in January that the tax authority was close to finalizing a new draft income tax law.
Key features of the package include:
* **Simplified Tax System:** A simplified and integrated tax system will be implemented for businesses with annual revenues of up to 15 million Egyptian pounds ($309,525), covering small and micro enterprises, startups, freelancers, and professionals.
* **Reduced Penalties:** Penalties for late tax returns will be capped at the original tax amount.
* **Streamlined Audits:** Tax audits will be conducted using a risk management system to streamline processes.
* **Increased Exemption Threshold:** The exemption threshold for “transfer pricing studies” for international companies will be increased to 30 million Egyptian pounds.
* **Enhanced Dispute Resolution:** Efforts will be made to expedite dispute resolution and clear accumulated tax files to boost economic activity.
* **Integrated Informal Economy:** Informal economic projects will be integrated into the formal sector using various facilitation techniques.
* **Simplified Tax Returns:** Tax returns will be simplified for taxpayers.
* **Expanded Sample Inspection System:** The sample inspection system will be expanded to include all tax centers.
* **Centralized Settlement Mechanism:** A new centralized settlement mechanism will be introduced.
* **Simplified VAT Refund System:** A simplified value-added tax refund system will be introduced to ease the burden on investors.
* **Investment in Tax Authority Staff:** There will be a significant investment in enhancing the efficiency of the Egyptian Tax Authority staff and improving their conditions.
The package aims to support Egypt’s efforts to maximize production and export capabilities, create a more competitive investment environment, and attract foreign investment.
**IMF Board to Discuss $7 Billion Program for Pakistan on September 25**
**ISLAMABAD** – The International Monetary Fund (IMF) executive board will meet on September 25 to discuss a $7 billion program agreed with Pakistan this year. The approval has been pending since July, following a staff-level agreement.
Pakistan’s Prime Minister Shehbaz Sharif expressed appreciation for the support of “friendly” countries in meeting the IMF’s requirements for the 37-month program. He emphasized the government’s focus on fulfilling the commitments made with the IMF, highlighting the efforts of the Finance Minister, government institutions, and the ambassador in China.
The program is aimed at cementing stability and inclusive growth in Pakistan, which has been struggling with economic challenges, including high inflation and a decline in foreign exchange reserves. The IMF’s conditions for the bailout include higher taxes on farm incomes and electricity prices.
**Saudi Arabia’s Tadawul Index Rises on Thursday**
**RIYADH** – Saudi Arabia’s Tadawul All Share Index reversed its recent downward trend, rising by 0.65 percent to close at 11,842.55 on Thursday. The Kingdom’s parallel market Nomu also increased by 0.66 percent, closing at 25,934.60.
Rasan Information Technology Co. led the gains in Tadawul, with its share price jumping 6.90 percent. Al-Baha Investment and Development Co. was the worst performer, with its share price falling 5.26 percent.
In Nomu, ASG Plastic Factory Co. led with an 8.51 percent rise. Arabian Food and Dairy Factories Co. was the worst performer, with a 3.61 percent drop.
**Bloom Consulting Opens First Middle East Office in Saudi Arabia**
**JEDDAH** – Madrid-based Bloom Consulting has opened its first Middle East office in Saudi Arabia, partnering with Destination Consultancy to help cities and regions improve economic growth. The move aims to assist in creating branding strategies that drive economic progression and enhance global competitiveness.
Bloom Consulting has extensive experience in nation and place branding, including a 2020 collaboration with the Royal Commission for Riyadh City to develop and implement the Riyadh City Brand strategy.
The office opening follows the regional headquarters initiative which has seen over 120 companies set up their Middle East bases in Riyadh in 2024.
**AI Experts Discuss Potential Benefits and Risks at Global AI Summit in Riyadh**
**RIYADH** – Experts at the 3rd Global AI Summit in Riyadh discussed the potential benefits and risks of artificial intelligence. While some expressed concerns about potential job losses, others emphasized the potential for increased productivity and new job creation.
Dr. Richard Benjamins, the co-CEO of RISE.ai, said that AI could lead to greater productivity and even three- or four-day weekends. However, he also stressed the importance of ensuring equitable distribution of wealth and mitigating potential negative consequences of AI.
Dr. Heather Doman, IBM’s global leader, responsible AI initiatives, emphasized the need to innovate and set the right guardrails around AI to ensure its ethical use.
Simon Turner of Sofinnova Digital Medicine suggested that the approach used in healthcare, which prioritizes patient well-being and includes quality assurance and ethics committee approval, could be applied to AI development.
**Experts Predict the Future of AI**
**RIYADH** – Experts at the 3rd Global AI Summit in Riyadh also shared their predictions for the future of AI.
Simon Turner said that in 10 years, AI could become more sophisticated than humans, capable of automating menial tasks and producing value. However, Dr. Richard Benjamins believes that AI will focus on solving complex problems rather than developing general intelligence.
Both experts expressed concerns about the potential for human brain power to deteriorate as AI takes on more tasks.
Turner believes that AI will lead to groundbreaking discoveries in research and healthcare, while Benjamins predicts that AI will play a significant role in the “co-pilot” concept, where humans remain in control.
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