Minister of Finance, Mohamed Maait, emphasized the government's commitment to promoting domestic production, attracting investors, and more
Egypt has recently updated its Value Added Tax (VAT) Law to simplify the process of exempting VAT taxes on imported machinery and equipment used for production.
In a statement, the Minister of Finance, Mohamed Maait, emphasized the government's commitment to promoting domestic production, attracting investors, expanding business activities, and creating job opportunities.
With the new amendments, manufacturers will not need to provide certificates of origin, cash deposits, or letters of guarantee to be exempt from the 5% VAT on imported machinery, equipment, and production lines used in industrial production and services.
Instead, companies must submit a pledge, either personally or through a legal representative, with a certified signature from banks, guaranteeing the tax or customs authorities that they will promptly pay applicable taxes when due.
In terms of green hydrogen production, Maait explained that Egypt offers tax incentives ranging from 33 to 55% of the taxes owed, as well as providing tax incentives of up to 35% of the local production cost for each electric vehicle manufactured.
In support of various sectors, the state treasury provides credit facilities amounting to EGP 12 billion ($389.61 million) for agriculture, industry, and tourism. Additionally, there are electricity subsidies of EGP 6 billion ($194.79 million) specifically for the industrial sector.
