Egypt to cut some import tariffs to zero pct, says paper

Daily News Egypt
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CAIRO: The Egyptian government plans to cut import tariffs on some capital and intermediary goods to zero percent from between 2 and 5 percent to boost investment, the daily newspaper Al Masry Al Youm said on Tuesday.

The changes will affect a number of industries, including automotive, spinning and weaving, dairy and food production, as well as spare parts for a number of household goods, according to the paper.

Egypt will also review import duties charged at 10 percent on some goods, the paper added.

The paper gave the cost of the reductions as LE 1.2 billion ($230 million) but did not say what period of time this would cover.

Official at the ministry of finance could not be immediately reached for comment.

The Egyptian government said earlier in December it plans tax exemptions and tariff reductions worth LE 2.2 billion as part of a package to stimulate the economy, with LE 1 billion exempting investors from sales tax on capital goods for a year starting in January.

The measures are part of a LE 15 billion stimulus package the government announced last month for the current 2008/09 fiscal year. The majority of the spending will go to infrastructure projects.

The Egyptian government has set its target for economic growth at 5.5 percent for the two years starting July 2008, after 7.2 percent growth in the 2007/8 financial year. (Writing; Editing by Andy Bruce)

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