ANNOUNCEMENT 27 Jul 2009In July 2009, the government of Egypt announced a change in domestic consumption support.
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Masress Egypt, 27 July 2009 (http://www.masress.com/en/dailynews/104897)
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.