[Egypt] Customs-free car import scheme for expats raises $385 million

The Egyptian government has attracted $385 million from expats through an initiative allowing them to import cars for personal use free of customs duties and taxes in exchange for a deposit in foreign currency, Egypt Today reports.

In a March 8 statement, the Ministry of Finance said 600 imported cars have been already released in Egypt, adding that the government has been receiving 3,000 import requests per day since the issuance of recent facilitations.

The facilitations reportedly include cutting customs tax by 70 per cent, which reportedly reduces the sums of money transferred from Egyptians abroad in different countries to the account of the Ministry of Finance by up to 58 per cent, according to the engine’s litre capacity and type of fuel.

The deadline for applying for the initiative will be May 14, Minister of Finance Mohamed Maait said, noting that there will be no further extension.

The initiative was approved by the Cabinet in October 2022, it allows expats to refrain from paying customs taxes for importing their vehicles into Egypt and instead send the money to the Finance Ministry as a foreign currency deposit for five years.

After the end of the five-year term, expats will be given back the money in local currency, the Egyptian pound, without interest.

The law states that Egyptian expats should have valid residence permits abroad, bank accounts that are not less than three months old and must be over 16 years of age

Late last year the government launched the Egyptians Expats Cars app on both the Android play store and the iOS app store so expats could apply for the initiative.

The minister has previously said the government is working towards attracting LE 50 billion ($1.6 billion) within the framework of the initiative.

The move reportedly came as part of Egypt’s efforts to deal with the impact of the Russia-Ukraine war on its economy, including a drop in the country’s foreign currency reserves.

Source: Egypt Today

The Egyptian government has attracted $385 million from expats through an initiative allowing them to import cars for personal use free of customs duties and taxes in exchange for a deposit in foreign currency, Egypt Today reports.

In a March 8 statement, the Ministry of Finance said 600 imported cars have been already released in Egypt, adding that the government has been receiving 3,000 import requests per day since the issuance of recent facilitations.

The facilitations reportedly include cutting customs tax by 70 per cent, which reportedly reduces the sums of money transferred from Egyptians abroad in different countries to the account of the Ministry of Finance by up to 58 per cent, according to the engine’s litre capacity and type of fuel.

The deadline for applying for the initiative will be May 14, Minister of Finance Mohamed Maait said, noting that there will be no further extension.

The initiative was approved by the Cabinet in October 2022, it allows expats to refrain from paying customs taxes for importing their vehicles into Egypt and instead send the money to the Finance Ministry as a foreign currency deposit for five years.

After the end of the five-year term, expats will be given back the money in local currency, the Egyptian pound, without interest.

The law states that Egyptian expats should have valid residence permits abroad, bank accounts that are not less than three months old and must be over 16 years of age

Late last year the government launched the Egyptians Expats Cars app on both the Android play store and the iOS app store so expats could apply for the initiative.

The minister has previously said the government is working towards attracting LE 50 billion ($1.6 billion) within the framework of the initiative.

The move reportedly came as part of Egypt’s efforts to deal with the impact of the Russia-Ukraine war on its economy, including a drop in the country’s foreign currency reserves.

Source: Egypt Today