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Egypt cancels tax on cement, iron, steel exports

Egyptian Trade and Industrial Minister Rachid Mohamed Rachid announced that Egypt has cancelled the tax on exports of cement and iron and steel products
He added that the decision by Trade and Industry Ministry was in response to the possibilities of an international economic slowdown, which would hit Egyptian exports.

The tax on exports of cement stood at 85 Egyptian pounds a tonne. For steel billets the export duty was 180 pounds a tonne, according to Middle East News Agency.
The government imposed the taxes at a time when local and foreign demand for Egyptian cement and steel was pushing up prices and leading to shortages in the local market.
It argued then that the tax helped to compensate the government for the cheap energy it provides to companies producing cement and steel in Egypt.
Cement companies, taking advantage of low production costs, had made Egypt the world's six largest exporter at one stage.
The government imposed a ban on cement exports from March 29 but that expired at the beginning of October.
The financial crisis in developed countries has changed the picture, and the government is now more worried that reduced demand abroad will hit Egyptian exporters.
"This measure was taken in the framework of the ministry's efforts to deal with the repercussions of the international financial crisis for exports and Egypt's balance of trade," Deputy Trade and Industry Minister Sayed Abu Qumsan was quoted as saying by the state news agency.
"If any disturbance in local market conditions takes place, the tax will be reimposed in a way which stabilises the market," the official added.