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2007-09-10
Economists to work and create a conductive and encouraging investment atmosphere
Yesterday evening economists called on creating a conductive atmosphere which encourages investments and promotes the Palestinian economic activity at various levels.
One of the most important characteristics of the local investment funds advanced the important rold they play in attracting foreign investment to emerge the financial market, "This is also a very important market for Palestine, and is essential to attract foreign investors, which it is difficult to visit Palestine because of the political situation and security difficulties, but can invest through funds Palestinian managed by specialized companies. "
At the level of domestic investment, said Almasri: The specialized investment funds would provide opportunities for the individual investor, few experience and knowledge of circulation in the capital markets, and to achieve return on investment from Majdi.
He said that the presence of investment funds and fund management companies focusing on the Palestinian market need for the advancement of this market, adding that a "path" and found that the appropriate opportunity to do so, "We have set up the first management company investment funds in Palestine a few years ago," but we faced several problems The obstacles have not been able so far to activate the fund.
Obstacles to establish investment funds
He added: "The first problem we faced was the absence of a specialized body, in a timely manner, license management company funds that we establishment,attending to the Monetary Authority, which has licensed the company, but treated banks, to the absence of laws governed at the time, had been seized from the top of Section money is also applicable to banks, the Monetary Authority repeatedly to disclose the company"s fundamentals, which are quite different from commercial banks fundamentals, such as treasury and protection system.
The founding of the Capital Market Authority, and approval of the Securities Act of 2004, which governs the management of funds, issuing instructions for the establishment and management of licensing and investment funds "a great achievement for the capital market, and that was supposed to be dealt with the biggest obstacle to the fund management companies and the funds themselves, and we became founding Palestinian investment funds and management companies specialized license. "
The Income Tax Act last obstacle
But Almasri referred to the final obstacle to the establishment of investment funds is in the Income Tax Act, which became final hurdle to start a fund, "which imposes a tax on profits Cape financial funds as financial companies, and this law in place in most countries of the region, which exempt investment funds tax and because of duplication of tax and to encourage investment. "
Almasri Income Tax Act Palestinian "contrary to the same terms that the individual does not pay tax on profits Cape financial, and therefore knew that if bought the shares on behalf of the Palestinian market, it reaps all the profits, if invested through the Palestinian Fund, it pays tax on this the profits, and therefore will not invest in the fund. "
He continued: "The current law discriminates between the Fund and the Palestinian foreign funds, it does not impose a tax on foreign fund, which is good, but must be treated equally Palestinian Fund, and only, there will be no Palestinian investment fund effectively as is the case now, nor will see any investment fund in the light of Palestine. "
Almasri appealed to the government quickly amend the law quickly through a presidential decree, the abolition of profit tax on financial Cape Palestinian investment funds, "We believe that after the amendment of the law, would look several companies founded investment funds in the near future."
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