Al-Armouti News Bulletin - July 2025

EGYPT

The Legislative Branch Passed VAT Law Amendments Targeting Several Industries

At the request of manufacturers and in compliance with international standards, on 29 June 2025 the Egyptian Tax Authority (ETA) has published a set of amendments to the value-added tax (VAT) Law covering certain commodities and sectors. The amendments are multi-faceted; essential commodities remain exempt, and the general VAT rate remains unchanged. The construction sector, crude oil (price of petroleum products is unaffected) and alcoholic beverages will be subject to schedule tax, and the fixed excise tax on cigarette packs will increase by EGP 0.50. Retailers within commercial complexes will be charged 1% of either sales or rental cost, while retailers outside these complexes will continue to be exempt.

Reshaping Customs: Major Developments in the Customs Landscape

New legislative updates to the Egyptian Customs Law are set to be issued and come into effect by the end of 2025. The proposed amendments are intended to facilitate customs procedures and reduce administrative pressure on importers. Notable amendments include adding a provision that allows customs duties to be paid in installments, accelerating customs processes, expanding the whitelist for compliant importers, and introducing a unified customs valuation platform for frequently imported commodities. All reforms are moving toward less disputes, a more streamlined and transparent customs system.

JORDAN

Jordan Amends Customs Law to Increase Operational Performance

Amending the Jordanian Customs Law is part of the ongoing efforts under Jordan’s Economic Modernization Vision to boost trade, attract investments, and enhance competitiveness.  The amended law entered into force on 29 June 2025. The key amendments include streamlining and expediting customs procedures by introducing post-clearance audit (PCA) in line with the best practices of the World Customs Organization (WCO), and digitalizing certain procedures such as adopting electronic notification and conducting customs inspections without the physical presence of the concerned party at the customs department.

Is the Newly Implemented Government Decision against Cars in Favour of Jordanians?

Following public backlash after last year’s government decision to increase special taxes on electric cars up to 55%, on 29 June 2025 the Jordanian Government has introduced a new set of measures targeting the automotive sector. These reforms aim to make the sector greener and improve road safety. The new tax scheme will subject cars to lower duty rates; the total tax rate on petrol-powered cars is cut from 71% to 51%, the tax on hybrid cars drops from 60% to 39%, electric cars now face a flat unified special tax of 27%. Finally, customs duties on scooters and motorcycles are also lowered from 45% to 33%. This reform goes beyond tax reductions, which are expected to lower car prices sharply. The government is also determined about safety, all imported cars entering the Jordanian market, regardless of their type and origin, must meet international safety standards. Also, salvage cars are now banned from entering the local market.