Volkswagen cars are lined up for sale at a car shop in Bad Honnef near Bonn, Germany. REUTERS-Wolfgang Rattay
CAIRO – 23 September 2018: Head of Customs Authority Al-Sayed Najm declared the tax exemption of imported vehicles from the European Union to Egypt on Saturday, September 22.
This comes as part of the Egyptian-European Association agreement signed in 2010, according to which customs on European cars to Egypt are decreased by 10 percent per year, illustrated Najm in an exclusive interview with Egypt Today. According to the agreement, by 2019 customs on vehicles coming from the EU will be “zero customs”.
However, this will not have a significant impact on the prices of these vehicles in the Egyptian markets, as there also will be a 14 percent VAT on cars coming from the European Union, which means that there will be a 4 percent increase in the prices of those cars, according to the head of the Egyptian Customs Authority.
Najm also stressed that the Egyptian reliance on protecting the Egyptian product, attracting foreign investments in Egypt, and increasing the international trade are all contributing factors that result in increasing taxes, especially while increasing economic activity and employment opportunities.
This comes after the Presidential decree No. 419 of 2018 in which various custom reduction rules were issued.