FILE - Egypt’s Parliament
CAIRO – 5 March 2018: Egypt’s Parliament approved on Monday the exemption of higher education and scientific research entities from taxation and tariffs including the value added tax on equipment and materials imported from abroad to implement their research projects.
Article seven of the draft law on incentives of science, technology and innovation stated that these entities should be exempt in an agreement with the specialized minister and financial minister.
Without prejudice to any penalties prescribed in this regard, taxes and duties on exempted goods shall be taxable if they are used in purposes other than research projects within five years from the date of their exemption.
Egypt is concerned about Higher Education and Scientific Research as the Egyptian government approved in September 2017 a law allowing the establishment of an Egyptian Space Agency to serve Egypt’s strategy in scientific research. The agency would work on programs related to the development of space technology and establishing satellite systems.
In addition, a cooperation agreement was signed on July 18, 2017, by the Ministry of Higher Education and Scientific Research and the National Bank of Egypt and Banque Misr to support researchers and scientists, and training them for three to six months.
The signing of the agreement was attended by Prime Minister Sherif Ismail who told the press that the agreement entails supporting researchers and scientists with LE 600 million ($33.44 million) annually in coordination with some universities and research centers.
State budget draft for the financial year 2017/18 allocates over LE 68 billion for higher education and LE 35 billion for scientific research, according to the draft submitted by the minister of finance to the House of Representatives on June 6, 2017.
According to the draft, the 2014 constitution stipulated allocating a percentage of the national budget to higher education and scientific research, amounting to two percent and one percent respectively, which would gradually increase to fit with international standards.
In addition, Minister of Higher Education and Scientific Research Khaled Abdel Ghafar underlined in November 2017 the importance of boosting cooperation between Egypt and Italy in the fields of higher education, scientific research, science and technology.