CAIRO – Minister of Finance Mohamed Maait said Tuesday the first phase of a presidential initiative to replace old cars with gas-powered vehicles will go into effect by the end of the month.
In this respect, a special protocol on the executive measures for implementing the initiative will be signed between the concerned ministries, banks, automobile companies and insurance companies by the end of March, he added.
In statements after a meeting with Minister of Local Development Mahmoud Shaarawy and Minister of Trade and Industry Nevine Gamea, Maait said the initiative will help boost the national automobiles industry, create new job opportunities and improve the living standards of citizens and the services offered to them.
The strategy aims to reduce fuel imports, decrease pollution from harmful emissions, ensure the safety of drivers and passengers, and tap into the potential of unexploited auto factories, he said.
Maait explained that the state’s treasury will cash EGP 7.1 bn of the finances of “Go Green” presidential initiative to replace as many as 250,000 old cars that had been operational for over 20 years, adding that the first phase of the initiative will cover the governorates of Cairo, Giza, Qalubiya, Alexandria, Suez, Red Sea and Port Said.
He also said the cabinet has agreed on granting the owners of private cars, who are willing to apply for the initiative, 10 percent of the value of the new car with a maximum limit of EGP 22,000, while taxi owners will be granted incentive of 20 percent with a maximum of EGP 45,000, while microbuses replacement will be of a maximum of EGP 65,000.
The value of the scrapping will be combined with the value of the green incentive together, to a maximum of EGP 50,000, and will form the advance purchase that will be deducted from the total price of the new car, he explained, noting that the price of the new vehicles will be paid via equal monthly installments over a period ranging between 7 to 10 years.