Local autos prices to jump 50% amid floating Egyptian pound: official

The prices of local and imported automotives would be increased by 50 percent and 15 percent respectively due to floating Egyptian pound against dollar.

Alaa El-Sabaa -a member at automotive division at Federation of Egyptian Chambers of Commerce (FEDCOC)- told Amwal Al Ghad Thursday that liberalising exchange rate would led customs tariffs to hike by 50 percent.

The Central Bank of Egypt (CBE) announced Thursday morning the floating of Egyptian pound against the US dollar at rate of 13 pounds.

The total volume of auto sales dropped by 30-35 percent within the last ten months, the official stated, adding that this volume is expected to sag by 40 percent with the coming two months

On other side, El-Sabaa clarified that applying the Value-added Tax law (VAT) caused prices of vans and minibuses to jump from 10 to 13 percent.