Back to Home Page What are the EPF Revenue Sources?

The Environment Law and its Executive Regulations defines the EPF's potential revenue sources as:

• Amounts allocated in the state budget to subsidize the Fund.

• Grants and donations presented by national and foreign organizations for the purpose of protecting and promoting the environment and which are accepted by the Board of Directors of the EEAA.

• Fines levied and legal or agreed-upon compensation for any damage caused to the environment.

• The financial resources of the Nature Reserves Fund, as provided for in Law 102/1983.

• The EEAA's share-not less than one-half-of the proceeds generated by a 25 percent tax imposed on air travel tickets issued in Egypt in Egyptian currency (pursuant to Article 1, Law 5/1986 and Prime Ministerial Decree 697/1986).

• Financial returns from experimental projects undertaken by the EEAA.

• Amounts collected by the EEAA for services rendered to third parties.

• Fees for licenses issued by the EEAA.

The majority of revenues are generated from two sources: payments of fines and compensations for damaging the environment and entrance fees for visiting Nature Reserves. Similarly, some of the potential revenue sources outlined in Law 4/1994 do not actually generate revenues for the Fund (e.g. EEAA's share of the tax imposed on air tickets issued in Egypt).

Enhancing the EPF's revenues is a high priority for the Fund's management. Accordingly, a "Revenue Enhancement Plan" is being developed by the Fund Manager and EEAA with the support of the Egyptian Environmental Policy Program's Project Support Unit (EEPP-PSU; a program sponsored by the United States Agency for International Development). The Plan will evaluate EPF's existing revenue sources and offer recommendations for their improvement. Another study, also supported by the EEPP-PSU, will review the experience of environmental funds in other countries with a wide variety of revenue-raising mechanisms, with a view toward highlighting alternative revenue sources the Fund may wish to consider in its future development.

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