Cairo – Mubasher: The Egyptian domestic cars market wasn’t influenced by the decision of trimming the tariffs on imported European cars on the consecutive increases of the US dollar against the Egyptian pound, economists told Mubasher.
The government may move towards raising the value added tax imposed on imported cars to set – off the decline in the tariffs’ proceeds.
The new decrease would mean that tariffs on vehicles of European Union origin are down 60 percent since the signing of the EU-Egypt Association Agreement.
Egypt is committed under the trade agreement to reduce tariffs on automobile imports by 10 percent annually, with an eye towards eliminating tariffs on cars by 2019.
The government had postponed the cuts in 2014 due to pressures on the domestic auto industry, but resumed them in 2015.
