Back in 2016, Customs duties on cars with engines of 1,300 cc capacity imported from Europe were eliminated. Now, quite gradual and annual reductions (at a rate of four per cent) had cars with engines of 1600 cc and above reach zero as well.
But the cars are still subject to other taxes. This includes mainly a VAT at 14% and a three% resources development fee.
According to Al-Ahram, with this reduction in tariffs, several car brands have announced decreasing their prices to their Egyptian customers. The decrease, however, won’t be effective until the new zero tariff cars arrive.
This comes as a result the EU-Egypt Association Agreement. The agreement’s final phase came into force this month delivering on the promises of the elimination of customs duties on European cars imported to Egypt.
