The European ambassador to the European Union (EU), Ivan Sorkosh, said that Egypt decided on January 1 to reduce tariffs on European imperial cars to zero.
The announcement of the European Union ambassador is the first since the date the Ministry of Trade and Industry postponed the application of the last tranche in accordance with the schedule agreed upon by the two sides in the Egypt-EU agreement that could disrupt the automobile market in Egypt. Respectively.
General Shaaban Shaaban of the Association of Automobile Dealers said the expected cuts in the car after zero tariffs would "not meet the citizens' aspirations."
Karim Nagar, general manager of the Egyptian commercial and automobile company (Volkswagen and Audi dealers in Egypt), said that if the customs country maintains the same value at 16 pounds, cars above 1,600 cc are the most profitable . And do not charge taxes and other administrative expenses by the Egyptian government.
On June 25, 2001, Egypt and the European Union signed an agreement for the establishment of a free trade zone between the Parties within a maximum of 12 years after the entry into force of the Agreement. The liberalization of imports from Egypt of European origin will be extended to 16 years.
Raifat Masrouja, honorary chairman of the Automotive Market Intelligence Commission (AMIC), said, "European cars represent 12% of 1600cc cars and 40.5% of cars above 1600cc. 15% for 1600cc vehicles, 15% to 13% for cars over 1600cc, and 13% to 30% for cars over 2000cc.
Masrouga said at a press conference Monday that a 12 percent cut in cars with a car price of less than 1,600 cq would be a 7 percent cut in price and a car with a price above 1600 cc would fall by 25 percent. If the car is higher than 1600 cc and the price reaches 800,000 pounds, the price will be 400,000 pounds.
"The price of the car will rise again from the parent company in order to share with the local traders the rate of growth caused by manipulation of one-third of the parent company and two-thirds of the factory, Said AMIC's honorary president.
He urged workers in the automotive market to offer consumers the opportunity to benefit at a new price. Egypt's price sensitivity index has already been discussed for cars covered by other contracts due to the manipulation of traders who are described as wasting government contracts with other countries at 20% when prices decline by 10%.
This decision not only covers European cars, but also includes all European Union vehicles, including 40% of European parts. In other words, US, Korean and Chinese cars manufactured in Europe all benefit from the reduction.