GASC in Egypt will penalize subsidized bakeries delaying bread cost payments, imposing a 25% interest on outstanding debts and reducing quotas. This initiative is part of a ministerial decision from August 2024 aimed at preserving the subsidized bread program’s integrity, which supports around 70 million Egyptians.
The General Authority for Supply Commodities (GASC) in Egypt has declared that it will impose penalties on subsidized bakeries utilizing natural gas that fail to make timely payments for the differences in bread production costs. This initiative stems from a statement issued by GASC, specifying that bakeries not adhering to the payment schedule will incur a penalty of 25% interest on any outstanding debts.
This action is based on a ministerial decision enacted in August 2024. Besides the interest penalties, non-compliant bakeries will see their subsidized bread allocation decreased by 25%. GASC underscored the significance of prompt payments to uphold the integrity of the subsidized bread system and safeguard the interests of all stakeholders involved.
GASC has compiled and circulated lists of bakeries that have failed to fulfill their payment obligations to supply directorates across the country. These directorates are set to commence implementation of the penalties specified in the ministerial decision that addresses these non-compliance issues.
The authority has urged all subsidized bakeries using natural gas to quickly settle any outstanding debts related to the disparities in bread production costs in order to avoid incurring such penalties. Ensuring a fair and efficient subsidized bread program is a priority for GASC, which plays a vital role in supporting the livelihood of many citizens.
Approximately 70 million Egyptians, making up two-thirds of the population, benefit from the country’s bread subsidy, highlighting the crucial role that bread plays as a staple food in Egypt.
In summary, the General Authority for Supply Commodities (GASC) in Egypt is enforcing penalties on bakeries that delay payments for bread production costs. Non-compliance will result in a 25% interest charge and a reduction of subsidized bread quotas. With around 70 million Egyptians relying on the bread subsidy, GASC is taking necessary steps to ensure the program’s continued integrity and efficiency.
Original Source: www.dailynewsegypt.com
