Solidarity and Social Justice Minister Gouda Abdel Khaleq said he will begin discussions with the Federation of Egyptian Chambers of Commerce and the Federation of Egyptian Industries to set a 30 percent profit margin ceiling on the sale of certain commodities.
The ceiling will be primarily applied to food and strategic consumer goods once implemented, Abdel Khaleq told Al-Masry Al-Youm.
“The decision will not apply to all goods, but there are priorities that must be focused on to help achieve the social justice that the 25 January revolution broke out to achieve,” he pointed out.
“Determining a profit margin does not conflict with a free economy, but it is a step that the government will take within its role of market regulation,” said Abdel Khaleq. He added that capitalist countries often enact regulatory procedures in order to stabilize markets.
“The government does not wish to take any unilateral actions, and seeks the views of all relevant parties,” the minister added. “Discussion with traders and craftsmen will begin after the Eid holiday to discuss the proposal in detail, and a market study will be performed in order to determine which goods the decision will be applied to, as well as to determine its implementation mechanisms.”
Monitoring authorities will be responsible for supervising the implementation of the profit ceiling and business organizations will play a key role by committing to the agreed upon terms, Abdel Khaleq said. He also pointed out, “Thirty percent is not the final number; it is only the first proposal which may be modified to maintain market stability and consumers’ best interests.”
Translated from the Arabic Edition
