The General Authority for Supply Commodities (GASC) in Egypt is to penalize bakeries that delay payments for subsidized bread production costs. These penalties include a 25% interest on debts and a reduction in subsidized bread quotas. The initiative is enforced to protect the integrity of the subsidized bread system, which benefits around 70 million Egyptians.
The General Authority for Supply Commodities (GASC) in Egypt has announced punitive measures against bakeries using natural gas that delay payments on subsidized bread production costs. A statement released by GASC indicates that bakeries failing to adhere to the payment schedule will incur a 25% interest penalty on their outstanding debts.
This initiative follows a ministerial decision issued in August 2024. Consequently, non-compliant bakeries will also experience a 25% reduction in their subsidized bread quota. GASC underlines the need for timely payments to uphold the integrity of the subsidized bread system and safeguard the interests of all stakeholders involved.
Additionally, GASC has prepared lists of bakeries that have failed to fulfill their payment obligations and shared these lists with supply directorates across the nation. These directorates are set to enforce the penalties as outlined in the recent ministerial decision.
GASC is urging all subsidized bakeries utilizing natural gas to resolve any outstanding debts related to the difference in bread production costs to avoid incurring these penalties. The authority’s objective is to maintain a fair and efficient subsidized bread program through the enforcement of these regulations.
Significantly, approximately two-thirds of Egyptian families, equating to around 70 million individuals, benefit from the bread subsidy, highlighting the pivotal role of bread as a dietary staple in Egypt.
In summary, GASC is implementing strict measures against bakeries that do not timely settle their subsidized bread production costs. This involves imposing a 25% interest penalty and a potential reduction in their subsidized quota. The aim is to sustain the bread subsidy program critical to millions of Egyptians, ensuring it operates fairly and effectively for all stakeholders.
Original Source: www.dailynewsegypt.com
