Khawat Policy Continues: Citizen Real Estate to Support the Economy!

Cairo | Following the escalation of popular protests over the sums imposed for reconciliation in the infractions of real estate construction in Egypt from 2008 until now, the government has given in to the objections, lowering the “reconciliation rates”, with the generalization of the price of 50 pounds (3.5 US dollars) per meter in the Egyptian countryside, while the price reaches in cities Up to two thousand pounds ($ 140) for residential buildings, considering that most of the buildings constructed in the last twelve years they involve irregularities ranging from engineering drawings to different floors. The government seeks to exploit the law approved by the Popular Assembly, and it is assumed that the contractor who built the infractions will charge the conciliation fees, in order to boost its fixed income from real estate taxes and others, through a database that it is currently being prepared and will be the first of its kind.

When Prime Minister Mustafa Madbouly announced the tariff reduction, he wanted to confirm that the decision was made in accordance with the directives of President Abdel Fattah Al-Sisi, although the latter appeared last week and raised the issue, calling for the application of the law. to all without exceptions, but the government’s argument to comply with the demands of citizens was The increase in real estate value beyond the financial capacity of citizens. Likewise, the total removal of infractions has been stopped pending what will happen after the deadline for conciliation requests, which have reached one million so far, and is expected to reach double this figure by the end this month, with revenue topping at least one hundred billion pounds, plus Madbouly announced that five of the major contractors alone paid one billion pounds in recent days to reconcile.

Taxes will include apartments in excess of one or closed and any construction work.

The state claims that the proceeds of reconciliation will be used to establish facilities in the violated areas in order to prevent encroachment on agricultural land, which is what previous regimes failed. But what prompted her to approve a 25% cut for those who pay immediately is to urgently raise money for the public treasury instead of borrowing, according to government sources. The sources reveal that the government is working in coordination between its different agencies and sovereign agencies to create a database of all properties in the country, in order to collect property tax retroactively since the law was approved in 2008 o even after recent amendments adopted by the current parliament, which include exemption from taxes on private housing. But by forcing citizens to pay a regular annual tax on any other property they own, which will guarantee more income, especially if the citizen is responsible for only one apartment!
In addition, the state will receive fees for registering real estate in the “real estate registry” of the Ministry of Justice. It will also charge a property tax even on apartments whose owners have closed them through the Ministry of Finance, while it will charge higher rates for any construction work that is carried out in the future in real estate. Indeed, the tax authority attached to the “Treasury” has begun to obtain the data that is sent to review the taxes owed on the units, especially those that are not registered or do not have official papers with the state, which will facilitate the demand of citizens for tax amounts owed on their units in addition to the original unit, which is expected to have a negative impact on rents, especially as landlords will tax tenants. In addition, the system works to deduct more taxes and ensure their payment, which has led to an exaggerated increase in rates in recent years without a notable improvement in services. However, anger over the exaggeration of fees sometimes forced the government to back down, as happened with driver’s license fees. Cars in advance.

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