Egypt is considering a major overhaul of its customs regime that would see the end of full exemptions for imported EVs, a senior government official tells EnterpriseAM. The move is part of a broader strategy to give global manufacturers — and not just in the automotive sector — reasons to set up shop in Egypt to assemble or manufacture, rather than shipping finished units into the country.

Since EVs became a thing in Egypt, the difference paid in customs tariffs between them and traditional combustion engine-powered cars is stark. While EVs only face the 14% rate of VAT and a 1% schedule tax, gas guzzlers face duties ranging from 40% to 135%.

Why it matters: Introducing tariffs on EV imports isn’t about leveling the playing field with other vehicles, it’s about leveling the playing field between outside exporters and local players like Al Mansour Group and Al Safi Group who are moving towards locally assembling EVs themselves.

But while full exemptions for EVs may soon be a thing of the past, duties will likely remain lower than their polluting counterparts, our source said.

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