Custom duties on cars, buses add 772 mln pounds to Egypt’s coffers

Total custom duties and the value added tax, among other duties, collected on cars, buses, and their spare parts in Alexandria port reached 772.5 million Egyptian pounds last month, a report from Alexandra customs said Saturday.

The report, which was sent to the Finance Minister, said that some cars enjoy a reduction in customs or an exemption as per Egypt’s agreements with the European Union (EU) and Turkey, saying that exemptions in January 2018 reached  436.2 million pounds.

Egypt signed an agreement with the EU in Luxembourg in June 2001, which stipulates that Egyptian imports of products originating in EU member states shall be free of customs duties, or any other charge having equivalent effect, and free of quantitative restrictions, in accordance with a specific timeline.

Under the agreement, Egypt is obliged to lower customs on cars imported from the EU by an annual rate of 10 percent.

For vehicles, all customs duties should have been eliminated by 2019, according to the agreement, but Egypt has postponed the annual 10 percent reduction in 2018 in a move to support the national automobile industry. Source: Egypt today