Under the new amendments, manufacturers are no longer required to submit certificates of origin, cash deposits, or letters of guarantee to receive an exemption from a five percent VAT on machines, equipment, and production lines imported to be used in industrial production and services.
Instead, manufacturers should provide a pledge by themselves or by a legal representative, with a signature certified by banks, to the tax or customs authorities that they will pay applicable taxes if and when they are due.
More tax incentives for green hydrogen
Minister of Finance Mohamed Maait said that Egypt is providing tax incentives varying between 33 to 55 percent of due taxes to encourage the production of green hydrogen.
Egypt is also providing tax incentives of up to 35 percent of the cost of each electric car produced locally, Maait added.
He noted that the state treasury bears EGP 12 billion ($389.61 million) in credit facilities for agricultural, industrial, and tourism sectors, in addition to EGP 6 billion ($194.79 million) in electricity subsidies for the industrial sector.