Customs amended to stimulate national industry, attract investment: Minister of Finance

Mohamed Maait, Minister of Finance, said that customs have been amended to keep pace with the developments of the 2022 Harmonized System (HS) issued by the World Customs Organization (WCO).

This amendment also aims to stimulate the national industry, which would eventually contribute to attracting more investments. This can maximize production capabilities, and help with localizing advanced industries that are consistent with the commitments to combat climate change.

Maait said, in a statement issued by the Ministry of Finance today, after the House of Representatives approved Republican Resolution No. 218 of 2022 amending the customs tariff in accordance with the 2022 HS, that the category of import tax on more than 150 types of production requirements and inputs has been reduced. This will help achieve the required balance between the tax imposed on finished goods, intermediate goods and primary raw materials that are partially or wholly involved in their production. Maait pointed out that the comments of the Federation of Egyptian Industries (FEB) and the industrial community have been responded to; in order to protect the industry, and maintain employment and employment rates.

He added that reduced local sub-clauses were introduced from the international provisions to protect the Egyptian industry in light of global economic conditions, such as those allocated to specialized laboratories in the field of tissue culture, cancer tumors, vaccine research, serums and blood preservation. , as they were in a category of items with a tax up to 60 and changed to only 5%. He explained that dialysis devices and supplies were exempted, and the import tax on walking sticks for the blind was reduced, as they belong on a list of items that received tax up to 40% and became only 10%. This is part of the state’s keenness to provide health care and reduce the burden on patients.

Maait pointed out that the incoming tax on machines and equipment for harvesting agricultural crops, straw and forage presses, and sorting machines for eggs and fruits, has been reduced from 5% to 2%, which contributes to alleviating the burdens on farmers.

He explained that the new amendments in some items of the customs tariff reflect the state’s keenness to localize the electric car industry in Egypt. They include collecting a customs tax of only 2% of the value or the established incoming tax, whichever is lower, on the equipment imported to supply stations with electricity or natural gas and components for converting vehicles to work with electricity only or natural gas, in addition to environmental monitoring equipment and their spare parts, as well as new and renewable energy equipment and components “wind and solar energy” and their spare parts. The new amendments also include what factories licensed to produce electric buses import, such as batteries, electric motors and unit controllers, auxiliary system units, steering units, battery cooling units and air conditioners. They belonged to categories with over 30% taxes.

El-Shahat Ghaturi, Head of the Egyptian Customs Authority, said the import tax has been reduced by 35% on natural gas-powered cars and ozone-friendly refrigerants, in the context of the global trend to combat climate change.

He pointed out that keeping pace with the international developments of the 2022 HS issued by the WCO, by adding all the amendments that included 351 commodity groups, including 77 amendments in the agricultural and food sector, 58 amendments in the chemicals sector, 38 amendments in the timber sector, 21 amendments in the textile sector, and 27 amendments in the ordinary metals sector, 52 amendments in the machinery and equipment sector, 22 amendments in the field of transportation and communications, in addition to 65 amendments in other sectors, according to the statistics of WCO.

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