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English news

26-Nov-2017

Automotive Directive expected to be issued early 2018

The Automotive Directive is expected to be issued early 2018, according to Minister of Trade and Industry Tarek Kabil. The government is currently in the process of finalising the draft law and is looking to send it to the House of Representatives for review by the end of November, said Parliament’s Industry Committee Chair Ahmed Samir. The amended bill would give tax breaks and incentives to local car manufacturers if they meet a minimum local component requirement of 45%, which would rise gradually to 60% over the course of eight years. Also, it would exempt them from development fees if they produce a certain number of vehicles on an annual basis, or if they export 25-40% of their total output a year. The automotive directive has been put on hold for several months now as a result of objections by key parties, including car importers and the EU. 

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