Egypt's new value-added tax bill, which still awaits the parliament’s approval, "will not put any additional tax burden on cars," the finance ministry stated on Monday.
The VAT will replace the currently applied rate of sales tax on cars, the statement confirmed.
The cabinet released a statement earlier confirming that fuel will be exempted from the new levy.
The long-delayed bill, which was approved by cabinet in May, is set at a flat rate of 10 percent.
The government aims to stamp out tax evasion by applying the tax to each member in the chain of production of goods and services, including the final retail stage. Currently, sales taxes are imposed only during a product's final sale to customers.
The finance ministry will hold a meeting later on Tuesday to clarify the details of the new tax project.