Egypt reveals new tariffs for locally-assembled cars

Some 10% will be cut from the total value of the locally-made content, the decision indicated.

The Minister of Finance Mohamed Maait, meanwhile, said the amendments impose a 2% custom duty of the value or import tax, whichever is lower, on equipment imports that supply vehicles with electricity or natural gas. The reductions will also cover customs tariffs related to mass transit and electric vehicles, and others.

The duties will be implemented to vehicles being converted to run on electricity, Maait reportedly elaborated.

As for custom duties imposed on imported parts in general, the cuts will amount to 105% of the local manufacturing inputs value once the percentage of the locally-made components ranges between 10% and 20%, the minister said.

The cut will rise to 110% of local input values if the percentage of local content ranges between 20% and 30%. In addition, the reduction will hit 115% if the local manufacturing component reaches 30 up to 40%, Maait added.

Furthermore, the rates will amount to 120% of local input value if the percentage of the domestically-manufactured components ranges from 40 to 60%.

In case local components exceed 60%, a reduction of 130% of the local manufacturing value will be implemented, the minister noted. However, cuts have a maximum of 90% of the tax category on the final product.