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Source: Cairo – Arabia.net
The Ministry of Finance of the Egyptian government announced that the Republican Decree No. 59 of 2020 that modifies some categories of the customs duty, which the Customs Authority has begun to implement, includes many facilities to encourage the Egyptian industry and deepen the local component, of a way that contributes to increasing investments and providing new job opportunities. And maximizing productive capacities and expanding the export base.
The Egyptian Finance Minister, Mohamed Maait, said that these amendments are framed in the improvement of economic performance indicators and the increase in growth rates, pointing to the treatment of customs distortions, the continuation of exemptions and reduced tariffs for materials production premiums and requirements, and the achievement of a customs tax balance between intermediate inputs and final products.
He mentioned that the tariff was used to reduce the burden on citizens, as the new amendments include a reduction in customs duties by more than 50% from their current levels on some components of the furniture, petrochemical and durable appliance industries such as refrigerators. and televisions, as well as for mass transit vehicles and vehicle supply stations with electricity and natural gas. , Noting that this decision aims to fill the gaps of customs evasion, which is represented in the exploitation of the lower customs categories of some components and raw materials, which was detrimental to all local industries.
He explained that the Republican decision included a package of amendments to the current tariff structure in order to encourage an increase in the local component by reducing the tariffs imposed on imported parts, to a higher percentage of the local component in the finished product, so that local factories enjoy a customs reduction in their production requirements imported from abroad, although the percentage of local manufacturing reached 10% instead of 30%, with the reduction rates increasing as the percentage of the local component increased .
He noted that the percentage of local manufacturing will be calculated on the basis of the percentage of the contribution of the assembly line that is determined by decision of the Minister of Commerce and Industry for each assembly industry separately, in addition to the proportion of locally manufactured parts on the total of the complete pieces that make up the final product, as determined by the Industrial Development Authority in light of the license. Issued by the establishment of the project.
Regarding the rates of reduction of customs duties in these cases, the Egyptian minister explained that they reach 105% of local manufacture if the percentage of local manufacture ranges between 10 and 20%, and it rises to 110% if the percentage of local manufacturing ranges between 20 and 30%, and 115% if the percentage ranges between Local manufacturing between 30 and 40% and up to 120%, if the percentage of local manufacturing ranges between 40 and 60% and up to 130 %, with a maximum of 90% of the tax category on the final product if the percentage of local manufacturing exceeds 60%.
He explained that the amendments impose simple customs duties on the import of equipment for supplying electricity to vehicles and components to convert vehicles to run on electricity at a rate of only 2% of the value or incoming tax, whichever is less, indicating that the amendments included reducing the category of incoming tax on cars intended to transport 10 or more people from Include the driver, which is equipped with only an electric motor, to become only 30% instead of 40%, in implementation of the country’s strategy for the transition to energy-efficient transport.
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