By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
    As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
    June 6, 2023
    FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
    FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
    June 6, 2023
    New MoU signed to develop SMEs in industrial zone in East Port Said
    New MoU signed to develop SMEs in industrial zone in East Port Said
    June 6, 2023
    CI Capital records revenues of EGP 1.6bn in 1Q 2023
    CI Capital records revenues of EGP 1.6bn in 1Q 2023
    June 6, 2023
    International Conference of Institute of National Planning discusses various types of governance
    International Conference of Institute of National Planning discusses various types of governance
    June 6, 2023
  • Politics
    PoliticsShow More
    Arab League calls on Security Council to shoulder its responsibilities, oblige Israel to end occupation
    Arab League calls on Security Council to shoulder its responsibilities, oblige Israel to end occupation
    June 5, 2023
    Institute of Diplomatic Studies holds training course for diplomats from South Sudan
    Institute of Diplomatic Studies holds training course for diplomats from South Sudan
    June 5, 2023
    Al-Sisi participates in African meeting on mediation in Russian-Ukrainian crisis
    Al-Sisi participates in African meeting on mediation in Russian-Ukrainian crisis
    June 5, 2023
    Washington, Riyadh call for new ceasefire agreement in Sudan
    Washington, Riyadh call for new ceasefire agreement in Sudan
    June 5, 2023
    Ugandan president says 54 peacekeepers killed in Somalia deadly attack
    Ugandan president says 54 peacekeepers killed in Somalia deadly attack
    June 5, 2023
  • Interviews
    InterviewsShow More
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    May 31, 2023
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    May 25, 2023
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    May 8, 2023
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    April 29, 2023
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    April 18, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: New tax on cars offsets custom exemptions on European models
Share
Notification
Latest News
As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
Tourism
FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
Business
New MoU signed to develop SMEs in industrial zone in East Port Said
New MoU signed to develop SMEs in industrial zone in East Port Said
Business
CI Capital records revenues of EGP 1.6bn in 1Q 2023
CI Capital records revenues of EGP 1.6bn in 1Q 2023
Business
International Conference of Institute of National Planning discusses various types of governance
International Conference of Institute of National Planning discusses various types of governance
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Automotive > New tax on cars offsets custom exemptions on European models
AutomotiveBusiness

New tax on cars offsets custom exemptions on European models

Ahmed Amer
Last updated: 2015/12/29 at 1:38 AM
By Ahmed Amer 4 Min Read
Share
cars
SHARE

As the automotive sector awaits the new customs reductions on European car models by 2016, rumours emerged suggesting that the state will impose a new tax on cars within days as part of the new automotive industry strategy.

The tax sparked a debate among those involved in the sector, where some believe the tax is the state’s attempt to manipulate the EU-Egypt Association Agreements in order, and to entrench protectionist policies rather than competitive regulations. Such a task thereby offsets the value of reduced customs on the consumer’s end product.

Egypt’s chief negotiator for the agreement, Gamal Bayoumi, said imposing a tax on imported cars is not a manipulation so long as all models are treated equally.

Based on the GATT agreement signed between Egypt and the EU, members are allowed to impose taxes on products as long as the tax is imposed on all local and imported goods, with the possibility of exempting local products if that will create more profits for the state.

Bayoumi said the government is working on developing a strategy for the automotive industry by attracting real automotive manufacturers, especially for engines, gearboxes, and the body.

“We do not want to import parts to assemble them in Egypt without making real profits,” he said. The government will cut customs on cars by 10% in 2016, which will bring the total customs reduction to 60% since the agreement came into force.

Egypt fulfilled its obligations until the 25 January Revolution in 2011, when customs cuts were halted in 2014 without any real justifications aside from the interests of businessmen who assemble European cars in Egypt, according to Bayoumi. Despite his objection, as well as Europe’s, he defended Egypt’s decision, since it has the right to suspend cuts for two years, as per the agreement’s terms.

The agreement allows companies and manufacturers in Egypt to form alliances with European companies that provide them with technology to manufacture some of the most important car components, such as the engine, gearboxes, and the body.

Honorary Chairman of Automotive Marketing Information Council (AMIC) Raafat Masrouga told Daily News Egypt that Europe has expressed its concern regarding the imposition of an additional tax.

The tax is an attempt to manipulate the implementation of the agreement through the automotive industry strategy, he said. Masrouga further called upon the government to maintain a real competitive environment in the sector and stop taking protectionist measures.

The new customs reduction will bring down the price of cars by 5%, provided that the dollar price stabilises. “The industry strategy and the mechanism for implementation will reveal the impact of the tax on prices of cars,” he said.

An official source at the Egyptian Customs Authority said the government has not yet instructed them to postpone the new custom cuts. Earlier this year, the authority resumed customs cuts after the suspension in 2014.

The source said enforcing the reductions in 2016 will boost the total reductions up to 60%, which will increase to 70% in 2017 and 80% in 2018. The final 20% will be applied in 2019 to offset the halted period in 2014 and will abolish all customs on imported European cars.

You Might Also Like

As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?

FRA extends deadline for electing Egyptian federation for securities’ board for 3 months

New MoU signed to develop SMEs in industrial zone in East Port Said

CI Capital records revenues of EGP 1.6bn in 1Q 2023

International Conference of Institute of National Planning discusses various types of governance

TAGGED: tax
Share this Article
Facebook Twitter Email Print
Previous Article Results of the IWF Grand Prix—5th Russian Federation President’s Cup
Next Article Korean car sales in Egypt register EGP 7.3bn in first 10 months of 2015
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
As Egypt decides to establish tourist chambers, federation, what is in it for tourism industry?
Tourism
FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
FRA extends deadline for electing Egyptian federation for securities’ board for 3 months
Business
New MoU signed to develop SMEs in industrial zone in East Port Said
New MoU signed to develop SMEs in industrial zone in East Port Said
Business
CI Capital records revenues of EGP 1.6bn in 1Q 2023
CI Capital records revenues of EGP 1.6bn in 1Q 2023
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?