Intermediate materials and capital goods whose tariffs range between 2% and 5% would enjoy customs exemption. In addition, the 10% customs tariff on goods would be reconsidered, Al-Masry Al-Youm has learnt. Capital goods and intermediate materials whose tariff would be cut include autos, machinery, air conditioners, engines, fans, spare parts of vacuum cleaners, furnaces and dairy whose tariff is 5%, as well as food industries, machinery that are used in mills, machines used in the industries of spinning and weaving, printing, electric lamps and insulated wires and cables.
President Mubarak is expected to issue a decree next January reducing customs on intermediate materials and capital goods to stimulate investments to face the repercussions of the global financial crisis.
The reductions, some LE 1200, would be financed by the public treasury of the National Investment Bank to encourage investors to pump new investments. The Technical Committee of Customs Tariff had studied the demands of the Federation of Egyptian Industries. There will be a meeting next week at the Ministry of Industry to discuss tariff reductions before being referred to the Supreme Council of Customs Tariff, which is headed by Minister of Finance Youssef Boutros Ghali, who would, in turn, pass it to the President to issue the decree.
For his part, first undersecretary of the Ministry of Finance and head of the Customs Authority Ahmed Farag said the proposed amendments would not include capital goods and intermediate materials whose tariff is 30%.
