MESAHA Magazine
ISSUE 3
English Version
Soaring prices are suffocating Egyptians
"Mesaha" covers the crisis of rising prices and the disappearance of vital commodities for Egyptians Commodity prices increased between 50 and 60% and 100% of their value by the beginning of the year The disappearance of rice infuriates citizens. Fish prices continue to rise. Over the past months, prices of some products have risen significantly, reaching about 50, 60%, and even 100% of their value. This was linked to the rising dollar rate due to exchange rate liberalization. This is in addition to citizens' complaints about the disappearance of other commodities, such as rice despite the Government's decisions to impose fines and penalties amounting to imprisonment if any of these commodities are concealed by any trader. Feed factories have also been halted due to the disruption of rice factories as it relies on "rice plant residue" as fish feed, despite the earlier announcement by the Minister of Supply that the crisis would be resolved. However, the problem persists on the ground, especially as the Government seeks to obtain a ton of speculative crops at less than the price they receive from the peasant, which represents a significant loss for the speculators.
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The Egyptian government has often blamed the rice crisis on traders, whether through spokespersons or officials in different chambers and sectors, noting that the problem is "some traders monopolizing the commodity so that it increases its price in markets." On his part, Hazem Al-Menoufi, Head of the Food, Grocery, and Perfume Division of the Alexandria Chamber of Commerce, demanded to include rice in the Egyptian Commodity Exchange in an effort to control prices and resolve the current crisis. The government should intervene vigorously to control rice prices, he said, because it is a strategic commodity, and also to counter "traders trying to monopolize, store and withhold food from citizens." "The government must introduce initiatives and incentives that encourage farmers to grow rice, and hand over their inventory to the government to reopen in a way that rebalances the market." MP Diaa El-Din Dawood pointed out that the government receives 6,600 pounds per ton of rice from the peasant and sells it to only 4 companies for 7,000 pounds per ton, adding, "The problem is that rice is sold in the Hyper and the major commercial chains at high prices, and it is not sold on supply cards to reach citizens in the popular neighbourhoods. In simple terms, we estimate that one company earns about 1 million pounds or 1/2 million a day. " Diaa El-Din Dawood stressed that what is happening in the rice trade file is "a political crime if it does not rise to the rank of a criminal offence, and this warrants the Government to be held accountable for this." Mohamed Saad al-Samoudi, member of the Agriculture and Irrigation Committee of the House of Representatives, said: We were surprised to introduce a new barley rice tonne system for each acre at 6,600 pounds for the fine grain and 6,850 pounds for the wide grain with a total amount of 1 million five hundred thousand tons, Only 250 thousand tons have been collected by the Ministry so far. We were also surprised by the Minister of Supply's decision to allocate 150 1,000 tons of barley rice per day at the price of 7 thousand pounds to four companies, the quantities allocated to the supply cards. Chairman of the Association of Citizens against High Prices Mahmoud al-Asqalani, said, 'The large suppliers sell a kilo of rice to groceries from 17 to 18 pounds, which means that the consumer is sold at least 19 pounds, Unfortunately, shopkeepers would prefer to stop selling rice because if caught selling above the 15 EGP set price, he would be subject to harsh penalties and fines. Regrettably, this enforced disappearance of rice is an attempt to compel the Government to overturn the pricing decision and cultivate it, especially since the new crop has been harvested; the price is assumed to be lower and not to increase. This requires a move by the Ministry of Supply and Supply Investigators to control the quantities stored and to deliberately penalize the illegal storage of this important commodity, which became scarce in the market, especially since rice is not imported from Russia and Ukraine, but from "Our local Delta lands". 2
In another context, the Citizens' Association warned against the repercussions. Banks stopped financing requests from importers of Sudanese meat in foreign currency, which has exacerbated the meat crisis in the past few days, resulting in an opportunistic increase in municipal meat, and Mahmoud al-Asqalani, Chairman of the Association of Citizens against High Prices said that foreign exchange needs should be quickly managed as soon as possible, so as not to reach bottlenecks in meat markets. Al-Asqalani warned about limiting the companies and withholding the dollar which hinders importing from Sudan, which could make the meat prices rise by at least 250 pounds in the coming weeks. During the fodder crisis and the damage that happened to manufacturers and consumers, the Ministry of Supply, represented by the Holding Company for Food Industries, resorted to importing shipments of chicken. One of those shipments from the United States is estimated at 5 thousand tons. The other is from Brazil, estimated at 12 thousand tons. The Producers' Union is, therefore, engaged in addressing all relevant state agencies to stop importing chicken from abroad. It succeeded in temporarily disrupting the Brazilian chicken deal, but failed to prevent shipment of American chicken parts chicken supply ". Yet, there are promises to supply chicken locally at the best price in the next phase. Dr. Abdelaziz Al-Sayed, Head of the Poultry Wealth Division of the Cairo Chamber of Commerce, says that the price of poultry (white poultry) has risen to 40 pounds per kilo, reaching the consumer by 45 pounds and in some places up to 50 pounds white chicks. Although the price of poultry and eggs had risen, the sale price was significantly lower than the cost of production, he said, adding that a large proportion of producers had moved out of the sector because of the heavy losses they had suffered several months earlier, which had led to a sharp decline in supply. Mr. Al-Sayed called for the government's intervention to control markets, control feed prices, and determine the cost of production, in order to ensure that the producer receives feed at appropriate prices and achieves an appropriate profit margin, adding that this will encourage producers who quit from the market to return again, and it will encourage the production and maintain prices for consumers. Fish prices in the markets rose crazily; it became an unaffordable meal, its prices jumped and doubled in a few months as fish remains the cheapest protein for low-income "poor people" when compared to poultry and meat prices. Ahmad Anwar, the owner of a fish shop, pointed out that the rise in fish prices these days was not seen before, adding: "We were selling a kilo of Bolti fish by an average of 20 pounds, now it reached 50 pounds. Of course, a breadwinner whose family is made up of four or five individuals will need 2 kilos in addition to the cost of cooking it which is around 10 pounds per kilo because of the high fuel prices." On the other hand, medicine prices continued to rise, given the increase in the customs dollar exchange rate and the costs of importing raw materials for production. The price rise in some items ranged from 15% to more than 70% of the drug's original price. 3
Suez Canal- A Red Line
Politicians, MPs, and parties reject the Suez Canal Fund project Calls for the establishment of a united political front against the law or any compromise. Fears of "opening the door" to selling assets and making foreigners share in the management of the channel Some MPs announce their rejection of the project and demand its rejection in the plenary The government denies and the parliament president explains: The Suez Canal is not for sale Sharp criticism and objections accompanied by feelings of concern and fear began to emerge, with the announcement by the House of Representatives of the preliminary approval of the Government's project to amend the provisions of Act No. 30 of 1975 concerning the Suez Canal Authority and the establishment of the so-called "Suez Canal Fund". The draft law provides for the establishment of a new fund for the Suez Canal Authority for the purpose of contributing alone, or otherwise, to the establishment of
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companies, or the purpose of increasing their capital, investing in securities, buying, selling, leasing, exploiting, and utilizing their fixed and movable assets. Once the bill's initial approval was announced, views differed and a number of political figures and parties rejected the bill, calling it a threat to Egypt's national security. The approval of the House of Representatives came in plenary on December 19, 2022, but the final vote was postponed to a later session because the quorum needed to pass it.
Closing the door once and for all For his part, General Mohab Mamish, Adviser to the President of the Republic for Ports and former Chairman of the Suez Canal Authority, criticized the government's bill because it would open the door to the presence of foreigners in the Suez Canal administration, commenting, "There is no need to open any doors that allow for external interventions in its management in the future." In press statements, Mamish stressed that any change in the regime or the entry of foreign investors would cause alarm among citizens, because the Suez Canal is linked and conscientious with the Egyptians who made it the first time with their blood dying while digging it, and the second time with their money. In his remarks, he continued: "Those who have money and investments in the Canal, will have the right to manipulate it, and therefore the door to this matter must be closed once and for all."
People's property. No for the Canal's Loss Hamdeen Sabahi, a former presidential candidate, commented on the bill: "The Suez Canal is a red line, with the lives of the people; we dug it; with the will of the people, we make it a national property, with the bloodshed of the People's Army; we freed it, and it is the people's own property and we will not allow a failed government to sell it." In the same vein, Dr. Mostafa Hegazy, an adviser to the former President of the Republic, said that "The Egyptian Suez Canal is not for sale, the Suez Canal is not some water that is being conducted there, the Suez Canal is a national treasure, established by the blood of those who dug it and the blood of those who freed it and the blood of those who believed that Egypt is for the Egyptians."
The Canal privatization President of the Socialist People's Alliance Party, Medhat al-Zahed, demanded the establishment of a front to defend the Suez Canal against the draft law amending the Suez Canal Authority system, and said: "It is now necessary to establish a front to defend the Suez Canal to unite efforts for all opponents of the Fund law." The Socialist People's Alliance Party (SPA) considered that the bill targets the Canal privatization, and that the aim of the amendment was clear and explicit, namely, to extend the hands of the ruling power to the Suez Canal itself through that fund. The party criticized the timing of the Fund's approval announcement, days after the signing of the agreement with the International Monetary Fund 5
(IMF) without declaring the terms of the agreement to raise general suspicions about the conditions imposed.
An Urgent Meeting Despite the bill's rejection by MP, Muhammad Anwar el-Sadat, head of the Reform and Development Party, he called for an urgent session for the National Dialogue to listen to the Parliament. There, all the figures of the government: specialists, political parties, forces, and experts can sit to listen to all opinions, concerns beyond the law, and what can arise against the trend of establishing this Fund and what is required by the recent agreement with the International Monetary Fund. This is in order to avoid forming national political fronts which defend the Suez Canal and pursue legal paths not to open the way for any rumors that may be misused by many. In his statement of 21 December 2022, El-Sadat demanded that objections should be heeded and not ignored, especially since it is related to something symbolic in the hearts of all Egyptians and a long history of sacrifice.
An Unequivocal Rejection In the same vein, the Constitution Party refused any trespassing in the Suez Canal and refused to establish a domineering investment fund to deduct its revenues; stressing that the country's assets of a strategic nature shall not be touched. In a statement on 20 December, the party expressed concern about the Government's economic decisions and policies, whether to expand its borrowing policy, impose more taxes on the people or sell more assets rather than develop them and increase their production and profits. The Conservative Party also rejected the bill, as it encroached on the state's most important public budget resources of foreign currencies. The party pointed out that the bill also conflicts with the requirements of national security and the stability and sustainability of the development of the Suez Canal facility. During the preliminary approval session of the bill, the President of the Parliamentary Committee of the Egyptian Social Democratic Party, Ihab Mansour, rejected the bill, demanding that the government must rearrange priorities and explore ways to increase the rate of growth, pointing out that the government borrows to repay debts and does not borrow for production.
The Speaker of the Parliament "Clarifies" In response to the controversy by many, Counseluor Dr. Hanafi Jabali, Speaker of the House of Representatives, said in his speech to Parliament that the news circulating both in the various media
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and on social media about the discussion of the law, which involves the establishment of a fund associated with the Suez Canal Authority, is not true. The President of the House of Representatives said that the bill did not reach its final approval. It does not contain any provisions affecting the Suez Canal, as it is a public property of the State, and may not be disposed of or sold. He stressed that the State is obliged in accordance with article 43 of the Constitution to protect and develop it as an international waterway owned by it, as well as to develop the Canal sector as a privileged economic centre. He explained that what the bill entailed of the right of the Fund to sell, buy, lease or exploit its fixed or movable assets was natural and compatible with the nature of the funds as a means of financing and investment, and did not work directly or indirectly on "Suez Canal", because the term "assets" cannot in any way be relegated to the Canal itself. It is "public money", which cannot be excessive.
The Government's denial While the propaganda about the bill rose, the Cabinet came out in a statement, denying the government's intention to establish the Suez Canal Authority Fund as a "back door" to sell the canal. "The Suez Canal and its management will continue to be wholly owned by the Egyptian State and subject to its sovereignty. The news circulating through websites and social media pages about the sale of the Canal will remain incorrect. The entire staff of the Canal Authority will remain employees, technicians, and administrators from Egyptian citizens." In its statement, the Cabinet continued: "The establishment of a fund owned by the Canal Authority is aimed at contributing to the sustainable economic development of the Authority's facilities. All accounts of the Fund will be subject to the control of the Central Accounting Agency." In contrast, the Alliance party considered that the Government's denial of privatization or sale of the Suez Canal was worthless since privatization did not necessarily mean the sale of the shipping stream itself, but rather the privatization of the activities of the Suez Canal Authority by allowing foreign companies to sell assets individually through the new fund, or in partnership with the Authority and other local agencies.
A Conference to Respond to Criticism As waves of rejection grew, the head of the Suez Canal Authority, Lieutenant General Osama Rabie, held a press conference at the Suez Canal Authority on 22 December, amid the presence of a number of public figures, to respond to criticism of the government's squandering of the Suez Canal or its assets.
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Rabie said in his speech that the Suez Canal facility's assets are sovereign and the Fund's assets are available for investment. The bill had been carefully studied and no funds would be deducted from the state budget on its own account. He added that the Fund is independent and separate from the Authority to provide any revenue and value added to it. This is through investing in its projects to benefit the economy and provide liquidity to cope with crises, and it is also monitored by the Central Accounting Agency. Commenting on the opening of the project for foreigners to enter the canal administration, Rabie said: "We will not allow the presence of a foreign investor in the administration, no foreigner can have authority or sovereignty over the canal." He explained that having partnerships with foreign actors does not mean having authority in the management of the canal or its assets. The Canal is committed to having the largest share in the projects implemented.
"An inevitable disaster - no one will survive from it." Report of the German Institute of International and Security Affairs on the expansion of debt policy by the Egyptian government The report calls on the European Union and the German Government to support the Egyptian regime under two conditions. A new report by the German Institute for International and Security Affairs warned against the Egyptian regime's economic and security policies, arguing that the continuation of these policies "will certainly lead to an inevitable disaster that no one will survive it." The report was prepared by Dr. Stefan Rolle, an expert on political reform, democracy, and governance, specializing in the affairs of Egypt and the Gulf States. He is also the head of the Institute's Middle East and Africa Research Department. The German Institute for International and Security Affairs is one of Europe's largest independent research centres specializing in foreign policy, advising the Government and the German Parliament on foreign and security policy issues. It advises decision-makers of international organizations, such as the European Union, NATO, and the United Nations. The report indicates that Egyptian President Abdel Fattah al-Sisi’s "authoritarian" regime is accompanied by a significant increase in Cairo's external debt, which reached more than its triple value between June 2013 and March 2022. The report stated that the government's policy of indebtedness was directly linked to the status of totalitarianism. Stressing that the government has managed to create a mix of incentives, threats, concealment, and camouflage with various international finance agencies. This made it possible to get more and more new loans.
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The report warned that the poor allocation of scarce financial resources and the use of debt policy to impose a policy of force increased the risk of Egypt's inability to serve its financial obligations in the future. This hinders social and economic development and promotes police brutality in the State. This in turn -- as the report states -- would support the political use of debt to strengthen power, as it prevents any effective control of the Government's actions. The report also examined the benefit of some enterprises and their economies from expanding their external debt policy, as the report considers that "external debt helps to protect the investment revenues of major enterprises by financing their projects", saying that external debt has helped them to protect their revenues and assets, and finance major projects that enable them to earn a massive amount of money. The report called on the German Government and future European partners to link lending and supporting Egypt in its negotiations with international financial institutions in case of two conditions: reducing the economic activities of major institutions and taking concrete steps towards ending police brutality in Egypt. "
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Deserves Freedom Jurists, Politicians, and Lawyers Call for Sherif Al-Rouby's Release.
Politicians, lawyers, and former prisoners of conscience demanded the release of political activist Sherif Al-Rouby, months after he was remanded in custody for political cases a few weeks after his release. The video published by the "Freedom for Sherif Al-Rouby " campaign involved lawyer Ziad Al Eleimy, human rights lawyer Mahinor El-Masri, activist Abdel Rahman Tarek (Mokka), lawyer Mohamed Fathi and others. The campaign said: "We remind you of our owner friend Sherif Al-Rouby, who spent years in prison without referring him to the court in any case he was imprisoned for." The campaign added: " Sherif AlRouby was detained solely for defending human rights and speaking out in the media about the violations of the released rights and demanding the release of all detainees." The campaign continued: "We have started collecting videos from activists and journalists inviting you to stand in solidarity with us, and have shared solidarity videos to demand the release of Sherif and all the detainees."
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Seven human rights organizations had announced their condemnation of the arrest of Sherif Al-Rouby, a political activist and leader of the April 6 Movement, 3 months after his release, after one and a half years of preventive detention. In a previous statement, the organizations said that the persistence of such practices belied some's claims about the human rights development in Egypt and contravened the announced efforts of the Presidential Amnesty Commission and its attempt to release political detainees. Al-Rouby spent about a year and a half of pretrial detention between December 2020 and May 2022 for the same charges, in Case No. 1111 of 2020 State Security. He was arrested for the first time in 2016 for charges of violating the Law of Demonstration. Then on April 6, 2018, in Alexandria governorate, when he disappeared for 8 days before being brought before the Supreme State Security Prosecutor on April 16, to investigate him on case 621 of 2018, restricting state security. On 22 July 2019, after nearly a year and a half of pretrial detention, the Cairo Criminal Court decided to release Al-Rouby with precautionary measures.
"The sole breadwinner of his family and children" Raouf Abbas Obaid's family to be released: he was not involved in any crime against the State. The wife of the journalist Raouf Abbas Obaid demanded urgently the release of her husband, who had been in custody for months. The wife appealed to those responsible to release him, because he did not engage in any violence or anything against the Egyptian state, in addition to being the sole breadwinner of his family. The wife added: "We appeal to all those responsible for the human rights file and the presidential pardon quickly to include Raouf Abbas Obaid in the list of the Presidential Amnesty Commission, especially as he is the sole breadwinner for children as young as 10 years old." On 7 July 2022, Obaid, a journalist in the weekly Rose al-Yousef, was arrested by security forces and detained in an unknown location until 18 July, when he appeared before the Public Prosecutor's Office. On 18 July, Obaid was charged by the Attorney General with belonging to a terrorist group and spreading false news. The prosecutor decided to imprison him for 15 days, which is renewed every 15 days to date. In his letter, Raouf , speaking to the Press Captain and members of the Union Council, said: "I know that life occupies you, and I know great you are busy, but stop with me a little bit to read this letter, although life concerns you, it stops with me." Obaid added: "I became a prisoner who did not know what he had been imprisoned for, but I am sure that this is malicious as I belong Al Watani Al Youm newspaper, which was founded in 2006, 17 years ago, and worked in many sites, magazines, and newspapers, and none of which is an anti-state site or journal."
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He said: "I am exposed to injustice and you witness that. You have gone from being witnesses to being participants in injustice. This was when you prevented my voice from reaching you and my colleagues. You refrained from publishing my crisis with any newspapers or websites, even if it was in the form of a petition or an appeal. I don't mean from delivering this message any blame, but I try to save your responsibility towards a colleague who has been wronged by you. My pen fails to write and describe the conditions I am unable to push away. These conditions entrap me from every side.
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Trade Unions are against the Electronic Invoice Protests, lawsuits, and briefing requests: lawyers, engineers, doctors, and pharmacists reject the new system
Attempts by the government and the Egyptian Tax Authority (ETA) to counter the anger of the unions. Politicians and parties show solidarity with professional unions in their demands A new battle by Egypt's professional unions, specifically by doctors, dentists, and pharmacists syndicates, against the new electronic invoice system approved by the ETA, which results in more costs for union members. Several professional unions came into conflict with the "electronic invoice" announced by the Ministry of Finance, where lawyers organized protests and some sub-unions told members not to pay court fees, while the doctors' union instituted a lawsuit to suspend it and the pharmacists' and dentists' unions protested it. In addition, requests for briefings reached 37 applications. The rejection of the "electronic invoice", which, in the view of its rejectors, such as doctors and dentists is considered "a new levy" sought by the Government despite their commitment to pay the various taxes imposed.
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On December 5, 2022, a protest was held in front of the Ramses Street Public Union in rejection of the "electronic invoice", completing a previous protest on December 1, 2022. The lawyers echoed a number of chants and slogans to indicate a refusal to register in the electronic invoice, including "How to impose extra tax toll while life as dark as charcoal", "It's a ridiculous joke; the client is broke" and "privatization means starvation; No for the monetary fund ". The Bar Association announced that it had held an emergency public meeting to discuss the implications of the electronic invoice, in the presence of Abdel-Halim Allam, the head of the Bar Association, and some members of the Public Union Council, together with members of the subsidiary unions nationwide, to discuss the ETA's endeavor to apply the electronic invoice.
The union's decision to "completely reject the forced registration of members of lawyers for the electronic invoice and all the implications and procedures resulting therefrom". It is crucial that registration does not occur until the Committee has completed its work. The Republic's subsidiary trade union councils are considered to be in permanent session pending the issuance of ministerial decisions regarding the non-registration of lawyers by electronic invoice. In the meeting held by Abdul- Halim Allam, head of the Bar Association, with Dr. Mohamed Maait, The Minister of Finance, in the presence of some leaders of the Bar Association and the Ministry of Finance, they shall establish all rules to ensure that such registration is not obligatory for the lawyers and suspended until the completion of the Committee’s work. " The union said: "It is the belief of all Egypt's lawyers that we strive to maintain the security; the security of this faithful country. And we hold onto this mission for generations. We, hence, shall postpone any talk of any escalatory action by the public associations of the sub-unions of the Republic. This includes any type of escalation until the Commission finalizes setting the final form of such registration and consequently alleviate the lawyers' burden". 14
Mokhtar Tawfik, head of the Egyptian Tax Authority (ETA), asserted that individual enterprises, whether commercial, industrial, providing services, or professional (doctor, engineer, lawyer, artist, legal accountant, consultant, all self-employed) are obliged to register in the electronic invoice system. Tawfik noted that 31 December 2022 is the deadline for companies obliged to join the eighth phase of the electronic invoice system, while 30 April next sets the deadline for the registration of individual entities in the electronic invoice system. the Egyptian Tax Authority (ETA) announced in an official statement that there are no exceptions for any financier in the ETA to register in the e-invoice system and the system must be joined so that the defaulter does not fall under the law. Earlier, Dr. Mohamed Maait, Minister of Finance, allowed extending the registration period of individual entities for the electronic invoice system from December 15, 2022, to April 30, 2023, as the last deadline, with joint committees to be formed between the ETA and various target groups, including members of professional unions. Following the decision of Dr. Mohamed Maait, Minister of Finance, to extend the registration period of individual entities of the electronic invoice system, the Bar Association announced the unequivocal refusal to register lawyers in the electronic invoice system and affirmed that it was not bound by the decision of the Minister of Finance in which it requested the date of registration of the electronic invoice until 30 April 2023. Former Minister of the Workforce and member of the Presidential Amnesty Committee Kamal Abu Eita, who participated in the protest in front of the Bar Association, said that the ETA decision to require lawyers to register in the electronic invoice system had "no legal basis", asking "Do they want to commodify the profession?!" If the profession becomes a commodity, the time will come and only those who can afford it will pay for it ". Head of the Socialist Popular Alliance Party Medhat al-Zahed confirmed the party's support for the civilized lawyers' movement in protest against the imposition of the electronic invoice, noting that they had presented a role model for protest and community negotiation in order to defend their rights. Al-Zahed said in a statement Monday, December 5, 2022, that the issue of e-fees should be seen as a societal issue affecting the availability of services and respect for citizens' constitutional rights such as the right to litigation and the right to education and treatment. The head of the Popular Alliance pointed out the importance of also distinguishing between big employers and the broad base of professionals, which meant that the low-income citizens and professionals are those who are going to pay the bill. That, with its current bias, means that the tax system is becoming a form of levy, deviating from its original purpose of providing services to citizens and narrowing disparities between social strata. 15
Al-Zahed pointed to the solidarity of the "Popular Alliance" with all demands for justice, stressing that the origin of litigation is a right and a service that must be made available to all citizens and not only to those who can afford it. The State's intervention to tax the course of the right to litigation will make it limited only to those who can afford it and prevent the availability of that service to be provided for the poor, who needed support most. Charging fees hinder justice and prevent them from benefiting from any rightful law. Proceeding to commodify services, like obligatory licensing for centers which also restricts citizens' right to go to schools and courts while the society has new groups regularly fall below the threshold of poverty as a result of inflation and increased soaring prices. A number of lawyers have appealed to the Administrative Court against the execution of the decision, since the electronic invoice and electronic receipt adversely affect the working conditions of the profession, commodify lawyers and, in turn, affect citizens' right to litigation, which is constitutionally guaranteed to all. The appeals stated that the e-invoice and e-receipt increase lawyers' fees and litigation fees, hindering poor citizens from claiming their right to litigation due to the high cost. They stressed that the electronic invoice and electronic receipt system could not be applied to the lawyer, as he did pay value-added tax during the proceedings, which could be considered double taxation. The doctors' union said that a decision had been taken to refuse to include doctors in the electronic invoice system of the nature of the profession. The doctors' union carried out this refusal in the form of a process of initiating a lawsuit in the Egyptian Council of State appealing against the decision of the Ministry of Finance to require doctors to register with the ETA in the electronic invoice system. In case No. 16759 of 77, the doctors' Union requested an urgent suspension of the implementation of the decision requiring doctors to register with the ETA of the electronic registration system, signature, electronic invoice, and electronic receipt. This is until reaching solutions for constitutional lawsuits. The physicians' union in the lawsuit also requested the annulment of the decisions. The General Union of Dentists joined in rejecting the electronic invoice. In a statement, the union announced its rejection of the compulsory registration of dentists in the electronic invoice, which is reinforced by the case filed by the head General regarding the electronic invoice and value-added VAT, as guaranteed by the Constitution and the law, that the General Union of Dentists has the right to defend its members and take care of their interests. In its official statement, the union stated that it was awaiting the adjudication of cases against the Minister of Finance, the head of the ETA, and the officials responsible for the value-added taxes and electronic invoices, in the first case on 1 September 2022. This is to stop the decision to collect VAT on the union's services to doctors, adding that the formation of the commission between the union and taxes will not only discuss electronic invoice registration, but it will also extend to discuss all dentists' fears,
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the lack of proper calculation of costs and tax problems, the electronic receipt and e-invoice, and the collection of value added. The Engineers' Union announced its refusal to register its members in the electronic invoice system and its solidarity with professional unions regarding their opinion about registration in the system as decided by the Ministry of Finance. It also called on all engineers to cooperate to face these actions, revealing its intention to take all necessary measures to protect the profession and the engineers' rights and interests. In its statement, the Union of Engineers stated that it is a professional union whose members do not engage in any commercial activity. It added that its members, when issuing engineering records and consulting office licenses, are required to be registered in the State's tax system, in order to enforce the law and support the formal economy. The statement added that engineering is a non-commercial occupation, in accordance with the Engineers' Union Act and the decision of the Minister of Finance No. 531 of 2005 to define noncommercial occupations in the application of article 70 of the application of the Income Tax Act, promulgated by Law No. 91 of 2005. Professionals in general and engineers, in particular, cannot be treated as commercial activities. The union noted that the imposition of the electronic invoice system compels engineers to bear administrative and financial burdens and procedures that engineers cannot afford financially and administratively. This is not necessary for the context of an engineering register and a tax file binding on everyone engaged in engineering work. The application of the electronic invoice imposed excessive fees for registration, documentation, and electronic signature in the first year and was repeated annually, unnecessarily, which was not commensurate with the entry of the total number of engineers practicing the profession. Representative Hala Abu Al-Saad, Under-Secretary of the Small Enterprises Committee of the House of Representatives, requested a briefing to the Speaker of the House of Representatives, Hanafi Jabali, addressed to the Minister of Finance, on the abolition of e-invoice fees for lack of legal authority under the Unified Tax Law. In her application, Abu Al-Saad stated that the ETA’s decision on requiring registrants to issue electronic tax invoices including the electronic signature of its issuer invoice approved by the Egyptian Tax Authority is invalid as it is incompatible with the law. All these measures are in line with the law and work on the governance of the tax process. But strangely, these decisions have been greatly exaggerated and are not based on any laws in e-invoice fees.
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"The ETA took the opportunity to earn and profit using legal materials and issued an overcharged fee for issuing the electronic invoice, with no legal basis and contrary to the aims and purpose of the law. The ETA must make the electronic invoices fee-free because these fees are charged without benefit, thereby they are charging a useless fee that is contrary to the Constitution." Dr. Maha Abdel Nasser, Member of Parliament and Deputy Chairman of the Egyptian Social Democratic Party submitted a parliamentary question to Chancellor Hanafi al-Jabali, Speaker of the House of Representatives, for his guidance to Dr. Mostafa Madbouly, Prime Minister and Dr. Mohamed Maait Minister of Finance. In its application, the Deputy said that there had recently been many objections from professionals to being included in the electronic invoice. Dozens of posts were circulated on social media showing variable and fixed expenses that will be paid to register in the invoice and more than one protest was held from the Bar Association, objecting to the application of the electronic invoice to them, while the talk shows included a lot of discussions on the subject. She, therefore, tried to investigate the facts on this subject and was surprised by the information that 95% professionals were not addressed to apply the e-invoice system. It would be applied to them by the e-receipt system, which was still in the initial process, and this would take 3 years without paying any expenses for the system's implementation. Dr. Amal Asfur, a member of the House of Representatives of the Republican People's Party of Port Said Province, requested a briefing for the Prime Minister and the Minister of Finance on the problems of registering and applying the electronic invoicing system after meetings held by the representative with the officials of the doctors, pharmacists and lawyers' unions. In her request for a briefing, the deputy explained that there were problems in assessing the costs to be incurred by the above-mentioned professionals at the time of registration and the existence of an electronic connectivity system with the ETA. This includes administrative burdens associated with the work of doctors, pharmacists, and lawyers, which are difficult to make invoices and estimate their value. In her request for a briefing to the House of Representatives, the Representative called for the extension of the registration period to give the opportunity to register after a proper understanding of the methods of registration. She asked also for the postponement of the system's actual application after identifying the actual problems that would arise from the application of the system; thereby, resolving them so that the proper application of the system would yield positive results.
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Violating the right to work! The Government imposes licensed approvals for the establishment of business activities
Groceries, gyms, Video C. Lawyers, deputies, and members of chambers of commerce refuse and demand cancellation The government partially responds to demands and reduces activities to 35 instead of 83 A deputy: What is the case for requesting security approvals for such simple activities? On December 10, the Official Gazette published a decision on subjecting some of the Public shops' activities to security approval. Pursuant to Decree No. 37 of 2022, which is attributable to the Higher Committee for Licensing Public Services in the Ministry of Local Development, the Decree establishes 83 activities requiring security approval from the competent Directorate of Security, before amending the Decree and reducing the number of activities by 35. According to the Official Gazette, the decision was issued by the Minister of Local Development, Major General Hisham Amna, as part of the activation
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of the Public Stores Law No. 154 of 2019 and its Executive Regulation in all governorates of the Republic. The decision unnerved some deputies, politicians, and public figures, which will set further restrictions on the owners of shops. Lawyer Tariq al-Awadi, a member of the Presidential Amnesty Committee, argued that the decision was an infringement of constitutional rights, most notably the right to work, calling on the owners of the business activities to appeal against the decision. According to the resolution, activities that require the approval of security authorities are supermarkets or "grocery" shops, paper and carton shops, seed shops, and agricultural, chemical, and organic fertilizers. Also gym lounges, gymnasium "billiards" or "PlayStation", and electronic games, as well as printing paper vending shops, keys shops, and gold and silver shops. Besides coal shops, translation, and copy offices, order delivery offices, shoe repair shops, leather manufacturers, and hairdressing shops for men and women. The decision also stated, used electrical and electronic equipment sales shops, telephone shops and maintenance, computer sale, apartment rental offices, trip offices, advertising, and furniture supplies shops. While the government is showing that the law aims to streamline the procedure, Freddy Elbaiady, a member of the House of Representatives, had a different opinion on the law, pointing out that this resolution creates further complexities. Elbaiady submitted a parliamentary question against the law, addressed to the Prime Minister, Minister of State for Local Development, and Minister of Supply and Internal Trade. He commented: "Why should security approvals be requested for such simple activities? Does the Government want to facilitate and encourage trade and investment? Or do you set more complexities and ask for more approvals?! Especially in this timing of a bad economic situation? " In the same vein, MP Mahmoud Kassem said that this decision would be an obstacle to various investment and business activities, especially since it has set excessively this obligation on various business enterprises to submit to it. Kassem commented: "The Government cannot reasonably request security approvals for simple activities such as groceries, cafes, coffee shops, beverage shops of all kinds, and other commercial activities", stressing that the issuance of any decision must be for the benefit of the people and must encourage investment. In press statements, Alaa El-Sabaa, a member of the Automotive Division of the General Federation of Chambers of Commerce, highlighted that the decision to have security approved for auto shops, for example, was incomprehensible, asking: "What does selling these goods have to do with security." Hazem Al-Menofi, Head of the Foodstuffs, Grocery and Spices Division at the Alexandria Chamber of Commerce, said in press statements that the decision could contribute to delaying of issuing licenses 20
for some people, demanding that chambers should be involved when discussing laws related to the internal trade and shops. Amid successive waves of rejection by deputies, shopkeepers and commercial activities, as the decision disrupted investment and was not beneficial, the Government decided to reverse and reconsider its decision. On 22 December, the Council of Ministers agreed to amend the Minister of Local Development's decision to identify activities requiring security approvals, to reduce activities to 35 instead of 83. In its statement, the Government added: "The amendment stipulates that the text of article 1 of the Decree of the Minister of Local Development No. 37 of 2022 shall be replaced with" Activities requiring licensing centres to obtain approval from the competent Directorate of Security, Which are extracted electronically through licensing centres, within the time period stipulated by Law No. 154 of 2019 and its Executive Regulation in accordance with the annexed table ", which contained an account of only 35 activities requiring security approval, instead of 83. During the Council of Ministers' meeting, the Government emphasized that security approvals were primarily aimed at ensuring that the necessary requirements were to secure the activity and the area in which it was located, particularly with regard to the sale of hazardous materials, petroleum warehouses and stores, and other activities of a special nature, which required additional civil security and protection requirements. For his part, General Hisham Amna, Minister of Local Development, stated that the purpose of the new law is to contribute to development efforts, pointing out that the simplification of the procedures was taken into account by dealing with one body, the licensing centres, where the general and special requirements for licenses are met within 90 days.
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