50 percent tax cut on industrial exports
Move to boost
competitiveness in foreign markets
The Parliament enacted on April 3 a law to reduce by 50 percent the income tax on industrial exports. Taxes on export profits had reached 15 percent before the tax cut.
Jacques Sarraf, Chairman of Malia Group, said: “This law will not increase the margin of profits for industrialists, but it will help them be more competitive in international markets.” He said that industrialists will be able to reduce the prices of their products in foreign markets.
The average profit margin for industrialists currently does not exceed ten percent, due to high operational costs, according to Sarraf.
Industrial exports reached $2.8 billion in 2013, after a drop of 3.5 percent compared to the previous year. The total exports reached $2.9 billion in 2012, according to the Ministry of Industry.
Date Posted: Apr 08, 2014