IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: No inception date

Consumption subsidy

Daily News Egypt, an independent newspaper in English, reported on 27 July 2009 that the Ministry of Trade and Industry and the Ministry of Finance are planning to implement a passenger car replacement program similar to the taxi replacement program currently underway. The aim of the initiative is to facilitate the process of replacing old passenger cars to reduce pollution.
The Minister of Trade and Industry, Rachid Mohamed Rachid, was cited to have said that incentives like tax discounts, financing and other incentives in line with previous replacement programs undertaken by the government will be provided.
While cited experts clearly argue that the scheme will increase local car manufacturers sales, there is no sign that the initiative is discriminatory against foreign competitiors. Mennatalla Sadek, senior financial analyst at Cairo-based investment bank Beltone Financial told Daily News Egypt that "this (the implementation of the replacement program) would mean that the local manufacturing companies would have an opportunity to capitalize, but it also means there would be increased competition from imported cars". 
It is further argued that Minister Rachid refused to give clear indications regarding the exact timing of the project's implementation.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

444 Machinery for mining, quarrying & construction; parts
8704 Motor vehicles for the transport of goods.
870410 Dumpers designed for offhighway use
491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870310 Vehicles specially designed for travelling on snow; golf cars and similar vehicles
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc
8704 Motor vehicles for the transport of goods.
870421 g.v.w. not exceeding 5 tonnes
870422 g.v.w. exceeding 5 tonnes but not exceeding 20 tonnes
870423 g.v.w. exceeding 20 tonnes
870431 g.v.w. not exceeding 5 tonnes
870490 Other

Please report this page in case you detect an inaccuracy in its content.