15/09/2004
Aker saa Magazine 2004/SEPTEMBER/15
This article discusses Egypt’s economy and the affects new custom tariff cuts will have on the industries in the future. New custom tariffs will affect consumers, the state, and producers. We must take into account that it comes within the framework of Egypt’s commitment to the World Trade Organization (WTO) and GATT agreement, said former economy minister Dr. Sultan Abu-Ali. The new tariff cut is supposed to serve consumers unless other duties and taxes are imposed, he said. “We hope that this is not circumvention around this decree. Tariff cuts decrease burdens shouldered by consumers.” The state’s return on customs duties depends on several factors. With regards to the Egyptian economy, including agriculture, industry, and services, there are points that should be considered.(Available in Arabic – German in PDF )
This article discusses Egypt’s economy and the affects new custom tariff cuts will have on the industries in the future. New custom tariffs will affect consumers, the state, and producers. We must take into account that it comes within the framework of Egypt’s commitment to the World Trade Organization (WTO) and GATT agreement, said former economy minister Dr. Sultan Abu-Ali. The new tariff cut is supposed to serve consumers unless other duties and taxes are imposed, he said. “We hope that this is not circumvention around this decree. Tariff cuts decrease burdens shouldered by consumers.” The state’s return on customs duties depends on several factors. With regards to the Egyptian economy, including agriculture, industry, and services, there are points that should be considered. Regarding the positive aspects of the new tariff, Abdel-Azeem says the business sector will benefit because its profits will rise and customs duties will be simplified overcoming disputes and irregularities. This will have a positive effect on local investment, with an increase in supply of goods, growth rates, and job opportunities. It will make up for the expected decline in customs duties, which the Ministry of Finance said it could redress in 18 months, he said. If prices do not decrease, they may be stable with the supply surge, having positive effects on the long run, Abdel-Azeem noted. Exports are expected to increase with the customs cut on raw and intermediary materials and the cancellation of Import Table (B) and all duties on exports. This means that there are facilities for exportation and export-oriented input. Therefore, profits will be higher, in addition to the fact that the increase in exports will decrease balance of payment deficits, improving the value of the Egyptian Pound against foreign currencies.