Egypt Weighs 5% Tariff on Imported Electric Cars

A new report reveals a government push to impose customs duties on imported electric vehicles for the first time. Sources point to a proposed tariff of just 5%. The decision remains under study and has not been officially approved yet.

Protecting Local Industry Takes Priority

The move targets safeguarding the budding Egyptian electric car industry, which has already taken its first steps. Authorities also aim to encourage investors to pump fresh capital into local manufacturing instead of relying on imports. The proposed customs levy on EVs remains just an unconfirmed inclination.

Current Exemptions for Electric Vehicles

New imported EVs currently enjoy full customs exemptions at 0%, unlike gasoline cars which face tiered taxes reaching 40%. Electric vehicles only bear a 14% value-added tax. This wide gap in tariff rates makes the proposed decision a hot topic across the market.

The suggested figure looks modest compared to duties on traditional rides. Yet it marks a radical policy shift toward electric mobility. Will it be enough to bolster local production?

The report, published by Asharq Bloomberg, cites unnamed government officials confirming the direction. Earlier unverified reports add further uncertainty about the fate of this policy. Egypt's market now awaits the outcome of forthcoming governmental deliberations.