GASC in Egypt will penalize bakeries that delay payments related to bread production costs, enforcing a 25% interest on debts and reducing their subsidized bread quota by 25%. This measure is designed to uphold the bread subsidy system, which supports around 70 million Egyptians.
The General Authority for Supply Commodities (GASC) in Egypt will impose penalties on subsidized bakeries using natural gas that fail to pay the required differences in bread production costs on time. Announced on Saturday, the penalties include a 25% interest charge on outstanding debts for non-compliant bakeries.
This decision aligns with a ministerial directive from August 2024, which also mandates a 25% reduction in the subsidized bread quota for those bakeries that do not comply. GASC highlighted the necessity of timely payments to uphold the subsidized bread system’s integrity and protect the rights of all involved parties.
GASC has compiled and shared lists of bakeries with outstanding payments to regional supply directorates, which will enforce the penalties stipulated by the directive. The authority calls on all natural gas-dependent subsidized bakeries to settle their debts promptly to avoid incurring additional penalties.
The subsidized bread program is crucial for Egyptian families, with around 70 million people or two-thirds of the population relying on this support, making bread a vital food staple in the country.
GASC’s strict measures against bakeries that delay payments are intended to strengthen the subsidized bread system in Egypt, ensure fair distribution, and protect beneficiaries. These penalties highlight the importance of timely financial compliance among bakeries to maintain the integrity of the program.
Original Source: www.dailynewsegypt.com
