The Ministry of Finance is currently considering a new draft law to exempt public and private companies from fines and interests of delays in paying insurance premium to mitigate the world financial crisis's repercussions. The draft law, being prepared to be referred to the Parliament, would be effective for one year from the date of enforcement. It provides for cutting 50% of fines and interests if companies paid the insurance premiums, Minister of Finance Youssef Boutros Ghali said.
The draft law aims to alleviate the financial burdens on employers, especially in the light of current conditions experienced by the labor market.
A similar 18-month bill has been issued in 2006 and exempted public and private companies from fines and interests.
The bill stipulated that if companies paid their dues during the first six months of the law enforcement, they would enjoy a 100% exemption if they paid during the second six months, they would enjoy 75% exemption and if they paid in the last six months, they would enjoy 50% exemption. The last law managed to collect LE1.73 billion when it exempted public and private enterprises from LE958-million benefits of delay. This confirms that the business community responses to the government initiatives, Ghali added.
