The House of Representatives yesterday gave its final approval to a presidential decree amending customs duties on hundreds of imports.
The changes in tariffs came to promote investment
The changes in tariffs came to promote investment, boost exports, and protect local industries, according to Yasser Omar, deputy chairman of the House’s Budget Committee. “It is important to change the import tariffs from time to time to tackle local and international economic developments and in a way that can create a more investment-friendly climate in Egypt,” Omar said. “Within this context, the new changes aim to protect local industries from foreign harmful practices that might negatively impact their competitive edge.”
Who’s getting tax breaks?
Tariffs were reduced on more than 150 raw materials imports for local manufacturers, with a focus on the automotive industry, Omar said. Tariffs were also lowered on medical equipment, while natural-gas powered vehicles saw a 35% reduction in tariffs.
Incentivizing the use of local components
Under the decree, manufacturers who use at least 60% local components in their products will get a 40% discount on customs duties for imported components.
In addition, A 2% import tariff will be levied on equipment to operate electric vehicle charging stations and natgas-powered vehicle fuelling stations, as well as on electric motors, batteries, control units, and ventilation systems used in electric buses.
