The Egyptian Tax Authority dismissed on Wednesday rumours of a 30 percent increase in taxes on imported and locally manufactured vehicles.
“The authority entirely dismisses news circulating on some websites and social media platforms that a development tax will be imposed on imported and locally manufactured cars,” the statement read.
Egypt’s vehicle sales dropped by 5.2 per cent year-on-year in February to reach 10,857 vehicles, down from 11,454 vehicles last year, according to figures released by the Automotive Information Council (AMIC) in April.
Passenger car sales fell by nine per cent year-on-year in February to reach 6,980 units. Bus and truck sales, meanwhile, increased by four per cent and three per cent year-on-year, respectively, according to the AMIC.
The decline has been attributed by some observers to the social-media campaign “Let it Rust”, which calls on people to stop buying cars to curb price rises.
The campaign was launched towards the end of 2018 to protest against the high prices of cars in Egypt.
It went viral in early January as consumers continued to wait for a decrease in automotive prices following the full elimination of custom tariffs on European cars within the framework of the free-trade agreement with the EU that went into effect at the beginning of the year.
Since its inception, the campaign has garnered nearly two million supporters.