Car Traders Association: Customs Guide Prices Threaten Luxury Models with Big Increases

Osama Abul-Magd, head of the Egyptian Auto Traders Association, confirmed that recent changes to customs guide prices have affected a number of luxury models. He explained that continuing with these values will inevitably lead to higher customs fees and taxes, ultimately increasing the final cost of affected cars. He also said that talk of price hikes doesn't apply to the entire market, but is linked to the revaluation of some cars at Port Said.

Details of New Increases on Mercedes GLC

Abul-Magd cited the Mercedes GLC 300 as an example, with its guide value rising from about 55,000 euros to 66,000 euros. He also noted that the Mercedes GLC 43 saw an even bigger jump, with the guide value climbing from 55,000 euros to 81,000 euros. These figures reflect the scale of change in the customs invoices that Egyptian customs relies on to calculate fees.

But does that mean car prices will rise by the same margin? Not necessarily, according to Abul-Magd, who said the impact only relates to the customs value used as the basis for calculating taxes, not the final market price. He added that the new values circulated recently can't be considered final or stable, especially as they remain under review.

Temporary Halt and Comprehensive Review

Abul-Magd also revealed that work with the new prices has been temporarily suspended, while a review of the values is underway to reach more fair guide invoices. He clarified that the updated values aren't final prices for all cars, and the market is waiting for these reviews to be resolved to see the real impact on prices.

He also stated that the potential impact of these changes doesn't relate to economy cars, some of which have seen recent price drops, since that segment isn't the main target of the customs adjustments. The changes concern imported luxury models concentrated at Port Said.

Traders and consumers in the Egyptian market are watching these developments cautiously, especially as the situation remains unclear regarding final guide values. Will these increases translate into higher consumer prices? The coming period will reveal the answer once the reviews are complete.