6.25% interest on loans paid off in five years;

75% of inspection costs to be paid by EOS

The Ministry of Finance has prepared an integrated plan in collaboration with the Ministry of Transport and the Ministry of Commerce and Industry in addition to a number of the commercial banks to offer various finance programs to the owners of trailers to make available five-year loans with annual interest of 6.25%, Dr Ghali added. Moreover, the tractor head of the semitrailers can now be imported with no customs duties, and the Ministry of Finance will bear the burden of the due sales taxes instead of the owners in both cases of modification and replacement. The group of benefits and facilities offered by the ministry to the project of replacing the trailers can amount to LE 100,000 per trailer and tractor head involved in the replacement or modification plans.

The finance minister revealed an agreement with Misr Insurance Company to present insurance coverage for the project. The new semi-trailers, tractor & trailer, will be insured completely after modifications or replacement at special prices in order to relive the owners of some of the burdens.

Included in the project of modification and replacement is a new exemption of customs duties to be enjoyed by imported tractor heads to face the shortage of such vehicles in the Egyptian transport fleet and the great expansion in volume of Egyptian commerce both locally and internationally. Importing used tractor heads will be allowed, still enjoying all other financial facilities allowed by the government to guarantee prices suitable for the Egyptian market.

Sales taxes involved in the project will be paid by the Ministry of Finance instead of the owner whether it is a case of modification to a semitrailer or a heavy truck by adding a tractor head or a case of replacement by a semitrailer or a tractor head.

The government aims with such a plan at assisting the industrial and commercial community in addition to alleviating the burdens of the final consumer of commodities and products transported from factories to the different markets by the Egyptian transport fleet, the minister asserted. These facilities will limit the cost of transportation and reduce market prices and eventually raise Egyptian exports competitiveness abroad, he expected.

The committee supervising the replacement project, set up by members from ministries of finance, commerce & industry and interior, has conclude the negotiations of reducing the costs of modification with the companies concerned with the project of modifying 34 thousand trailers currently working in the market.

The Ministry of Finance has prepared a booklet containing all the relevant information and data, including names and addresses of these companies, cost of modification of the different types of trailers and tractor heads, to offer different options to the owner of the old trailers.

The booklet also details prices and specifications of imported trucks and tractor heads in addition to the names and addresses of the importing companies.

The Egyptian Organization for Standardization and Quality (EOS) will do the inspection necessary to verify compliance with Egyptian specifications and all requirements of safety and security with the help of specialised international companies. In cooperation with the companies subscribing to the project, the Organisation will pay 75% of the cost of inspection which is LE 3000 for every semitrailer and tractor head, as one of the financial benefits enjoyed by the subscribers to the project.

(Source: Ministry of Finance)