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Egypt VAT on Ag Freight Services Could Disrupt US Exports, USDA Says

Egypt recently imposed a value-added tax on freights for agricultural commodities, which could disrupt certain U.S. exports, the Foreign Agricultural Service said in a report released Nov. 16. The VAT, which took effect without prior notice on Aug. 1, could…

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hurt U.S. exports of soybeans, corn and corn byproducts to Egypt and will put U.S. exports at a “competitive disadvantage” in the Egyptian market. The VAT could also “potentially jeopardize the reliable, affordable supply of food, feed and agricultural products for producers and consumers” in Egypt. The VAT applies a 14% tax on “advanced freight services” for certain agricultural commodities.