New Toyota cars are transported from their manufacturing facility in Burnaston - REUTERS
CAIRO - 13 October 2022: The Egyptian Cabinet approved, on Wednesday, a draft law that gives Egyptians expatriates the right to import a private passenger car, for personal use, exempt from taxes and fees, in return for paying a cash amount in hard currency, to be recovered after 5 years, in a move aimed at strengthening the country's dollar resources.
The Cabinet stated in a statement that the draft law stipulates that “an Egyptian who has a valid residency abroad has the right to import one private passenger car for his personal use, exempt from taxes and fees that had to be paid to release the car, including the value-added tax and the schedule tax.
The Schedule Tax is another type of tax which is imposed only once, unless the goods are transformed or changed. Packaging, re-packaging, refining, purifying and milling of goods shall not be considered as transformation.
The law stipulated, to benefit from these exemptions, the payment of a cash amount in foreign currency, for which no return is due, equal to 100 percent of the value of all taxes and fees that had to be paid to release the car, including value-added tax and schedule tax, provided that the amount is transferred from abroad in favor of the Ministry of Finance on one of the accounts specified by the draft law.
The draft law stipulates that the cash amount transferred in favor of the Ministry of Finance shall be recovered after five years from the date of payment, with the same value in the local exchange rate of the foreign currency in which it was paid at the exchange rate announced at the time of redemption.
The Central Bank of Egypt (CBE) announced previously that remittances from Egyptian expatriates increased 22.6 million during the first seven months of 2022, recording $18.72 billion, compared to $18.69 billion during the same months of 2021,
In July, the remittances from Egyptian expatriates decreased to $2.38 billion, compared to $2.79 billion during June 2021.
Moreover, the remittances from Egyptian expatriates increased 1.6 percent during the fiscal year 2021/2022, recording $ 31.9 billion, compared to $31.4 billion during the fiscal year 2020/2021.
The CBE elaborated that the period from April to June 2022 witnessed an increase in remittances by 3 percent, to record about $8.3 billion, up from $8.1 billion during the corresponding period.
Furthermore, remittances recorded $2.8 billion during June 2022, compared to about $2.9 billion during June 2021.
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