100k expats registered for tax-free car import initiative: Finance Minister

CAIRO - 7 November 2023: The Minister of Finance, Mohamed Maait, announced that 100,000 citizens have registered for the second round of the car imports initiative. This initiative aims to facilitate the import of cars for Egyptian expats.

The government recently declared the relaunch of the zero-customs car import initiative for the second time, with the possibility of an additional 3-month extension. Head of the Egyptian Customs Authority (ETA), Al-Shahat Ghatouri, confirmed that the law extending the initiative went into effect on October 30, 2023, for a period of three months, concluding on January 30, 2024.

The decision to extend the initiative was made to provide an opportunity for expats who were unable to benefit from the first round. In October 2023, the Minister of Emigration and Egyptian Expatriates' Affairs, Soha Gendy, stated that the extension primarily targets those expatriates who missed the initial opportunity.

Under the initiative, Egyptian expats are permitted to ship one personal-use vehicle to Egypt without incurring any customs duties or taxes, including the value-added tax (VAT). To participate, they must deposit the customs value in a foreign currency into an interest-free five-year certificate of deposit. At the end of the period, the deposit is returned to them in Egyptian pounds, based on the prevailing exchange rate.

The zero-customs car import initiative was launched by the government as part of its ongoing efforts to boost foreign currency flows. Egypt has been grappling with a shortage of hard currency, and this initiative aims to address the issue. According to data released by the Ministry of Finance, the initial launch of the initiative generated approximately $763 million from 151,000 expats.