{"id":595540,"date":"2019-09-30T04:13:12","date_gmt":"2019-09-30T04:13:12","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/"},"modified":"2019-09-30T04:13:12","modified_gmt":"2019-09-30T04:13:12","slug":"govt-looking-to-impose-development-tax-on-cars","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/","title":{"rendered":"Gov\u2019t looking to impose development tax on cars"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-02\"><\/a> <b>EXCLUSIVE- Gov\u2019t mulls industry-wide development tax for the automotive industry:<\/b> The government is considering imposing a development tax on all imported and locally produced cars, two government sources told Enterprise. The idea of a sliding tax that varies with engine size is now being discussed by a ministerial committee tasked with revamping the so-called automotive directive, which would offer a measure of protection to domestic assemblers facing competition from EU, Turkish and Moroccan imports<\/p>\n<p><b>At the same time, the committee is debating whether to lower import duties<\/b> on non-EU cars while simultaneously hiking taxes across the board. Car imports from the EU are now entering Egypt at <a href=\"https:\/\/enterprise.press\/stories\/2019\/01\/02\/what-were-tracking-on-02-january-2019\/\">zero customs<\/a>.<\/p>\n<p><b>So how would this help local assemblers? The short answer: rebates.<\/b> Under one model now being discussed, the two sources said, local assemblers could become eligible for a rebate of the full development tax if they meet one of three conditions: hike production output from their assembly lines; \u201csignificantly\u201d increase their production (or use of) locally made car parts; or export more.<\/p>\n<p><b>Look for this to go before the House<\/b>, the source said: The measures would collectively require approval by legislators.<\/p>\n<p><b>Background:<\/b> We\u2019re having flashbacks to the old automotive directive, which was designed to allow local manufacturers to better compete with EU, Moroccan and Turkish imports that receive customs breaks here in Egypt. <a href=\"https:\/\/enterprise.press\/stories\/2016\/11\/27\/spotlight-on-automotive-directive-and-its-executive-regulations\/\">The previous legislation<\/a> had <a href=\"https:\/\/enterprise.press\/stories\/2018\/04\/30\/trade-and-industry-ministry-paves-way-for-automotive-directive-and-sets-46-domestic-component-requirement\/\">stalled last year in the House<\/a>, in no small part thanks to extensive lobbying by EU car importers. This had led the government to quit seeking new legislation for the auto industry and provide incentives through <a href=\"https:\/\/enterprise.press\/stories\/2019\/07\/30\/cabinet-approves-final-customs-package-for-car-makers\/\">amendments to the Customs Act<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EXCLUSIVE- Gov\u2019t mulls industry-wide development tax for the automotive industry: The government is considering imposing a development tax on all imported and locally produced cars, two government sources told Enterprise. The idea of a sliding tax that varies with engine size is now being discussed by a ministerial committee tasked with revamping the so-called automotive [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":595541,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[144,357,72,180,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-595540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-automotive","tag-automotive-directive","tag-enterpriseam","tag-legislation","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"062e844c-203f-4ae7-9185-8bb674afb702","is_powered_by":true,"section_story_id":"7419683f-a83b-448e-a82f-0692c8bcdbeb","story_type":"1","photo_url":"https:\/\/ent.news\/2019\/6\/1903.jpg","photo_position":"above","related_issue":[595533],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Gov\u2019t looking to impose development tax on cars - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gov\u2019t looking to impose development tax on cars\" \/>\n<meta property=\"og:description\" content=\"EXCLUSIVE- Gov\u2019t mulls industry-wide development tax for the automotive industry: The government is considering imposing a development tax on all imported and locally produced cars, two government sources told Enterprise. The idea of a sliding tax that varies with engine size is now being discussed by a ministerial committee tasked with revamping the so-called automotive [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2019-09-30T04:13:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1903.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Gov\u2019t looking to impose development tax on cars\",\"datePublished\":\"2019-09-30T04:13:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/\"},\"wordCount\":278,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1903.jpg?fit=%2C&ssl=1\",\"keywords\":[\"automotive\",\"Automotive Directive\",\"EnterpriseAM\",\"legislation\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2019\/09\/30\/govt-looking-to-impose-development-tax-on-cars\/\",\"name\":\"Gov\u2019t looking to impose development tax on cars - 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Trade Minister Nassar\u2019s car assembly policy: Trade and Industry Minister Amr Nassar\u2019s decision to scrap of former minister Tarek Kabil\u2019s policy to increase the percentage of local content in domestically assembled cars is meant to give assemblers breathing room until a new set of\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1903.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":627340,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/07\/30\/govt-plans-to-scrap-automotive-directive-and-will-replace-it-with-special-zones\/","url_meta":{"origin":595540,"position":1},"title":"Gov\u2019t plans to scrap Automotive Directive and will replace it with special zones","author":"enterpriseam admin","date":"30 July 2018","format":false,"excerpt":"EXCLUSIVE- Gov\u2019t plans to scrap automotive directive, looks to replace it with special economic zones: The Madbouly Cabinet has decided to scrap the automotive directive \u2014 the long awaited government strategy to grow the domestic auto industry by granting local assemblers incentives to move further up the value chain to\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":622169,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/11\/28\/japanese-companies-want-clarity-on-govt-policy-toward-automotive-assembly-industry-before-committing-to-new-investments\/","url_meta":{"origin":595540,"position":2},"title":"Japanese companies want clarity on gov\u2019t policy toward automotive assembly industry before committing to new investments","author":"enterpriseam admin","date":"28 November 2018","format":false,"excerpt":"Japanese companies want clarity on gov\u2019t policy toward automotive assembly industry before committing to new investments: Japanese automotive companies are interested in investing more in Egypt, but are waiting for clarity on government policy, Japanese Ambassador to Egypt Masaki Noke said. \u201cIf you have a trade agreement, you can import\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":630283,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/17\/future-investments-in-egypt-from-nissan-toyota-ride-on-the-automotive-directive\/","url_meta":{"origin":595540,"position":3},"title":"Future investments in Egypt from Nissan, Toyota ride on the Automotive Directive","author":"enterpriseam admin","date":"17 April 2018","format":false,"excerpt":"Future investments in Egypt from Nissan, Toyota ride on the Automotive Directive: Japanese automakers Nissan and Toyota are waiting on the Automotive Directive to decide on how to expand their investments in Egypt, economic counselor at the Japanese embassy in Cairo Hiro Ichiba said. The two companies would invest more\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":624914,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/23\/tariffs-on-eu-cars-will-still-fall-to-zero-next-year-says-nassar\/","url_meta":{"origin":595540,"position":4},"title":"Tariffs on EU cars will still fall to zero next year, says Nassar","author":"enterpriseam admin","date":"23 September 2018","format":false,"excerpt":"**#3 EXCLUSIVE- Tariffs on EU cars will still fall to zero next year, says Nassar: Trade and Industry Minister Amr Nassar told Enterprise overnight that the government has no plan to put on hold a tariff cut on cars imported from the European Union. Automobiles imported from the EU will\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":569943,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/03\/12\/cabinet-greenlights-automotive-strategy\/","url_meta":{"origin":595540,"position":5},"title":"Cabinet greenlights automotive strategy","author":"enterpriseam admin","date":"12 March 2020","format":false,"excerpt":"Gov\u2019t greenlights automotive strategy: The Madbouly Cabinet approved in its weeklymeeting the long-awaited automotive strategy to encourage car assemblers and feeder industries. While the statement falls short on discussion of the finer details, it notes that the strategy will comprise legislative provisions, incentives, infrastructure improvements, and trade agreements with countries\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/3\/152.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/595540","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=595540"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/595540\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/595533"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/595541"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=595540"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=595540"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=595540"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=595540"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=595540"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}