Mohamed Maait, Minister of Finance, said that some categories of custom tariffs have been modified to encourage local production and enhance the competitive strength of Egyptian products in global markets.
After the House of Representatives approved Resolution No. 558 of 2021 amending some categories of customs tariffs, Maait said that the customs had been reduced from 60% to 2% for “jet heads of vessels filled under pressure” (spray heads) as a production requirement for a number of industries. Moreover, a customs tax was imposed on granite slabs at a rate of 20% while keeping the customs tax as it is, for blocks of granite, as it is one of the basic needs of the early stages of the granite industry. This aims to protect the local granite industry especially that the final product imported is subject to a 40% customs tax.
He explained that the customs of the granite tariff achieves the required balance between production requirements, intermediate goods, and final products.
He pointed out that a customs tax has been imposed on imported photovoltaic cells as a final product of 5%, especially that the basic components of photovoltaic cells are already subject to tax categories ranging from 2 to 5%. The customs treatment of the tariff of “photovoltaic cells” achieves the required balance between production inputs, intermediate goods, and finished products.
A customs tax equivalent to 10% was imposed on imported mobile phones to stimulate the local industry in information technology, especially mobile phones, while keeping computers and their accessories and “tablets” exempted as they are the main tools for digital transformation developing the education system.
El-Shahat Ghatouri, head of the Customs Authority, said that the decision to amend some categories of customs tariffs was issued in light of the conclusions of the Higher Council of Customs Tariffs, which aimed at addressing customs tariff distortions and setting appropriate tax categories to achieve the required balance between activating the production and commercial process; responding to the demands of the industrial sector; and recognizing the importance of using tariffs as a financial policy tools aimed at encouraging the local industry.
In accordance with the Customs Law, these amendments to some categories of customs tariffs were implemented as of Sunday, in implementation of the approval of the House of Representatives of Resolution 558 of 2021.
The Ministry of Finance and the Customs Authority were keen on interacting positively with the business community, studying its proposals, and taking the necessary measures towards stimulating the investment climate as well as encouraging investors to expand their production activities.
