Egypt has attracted $385 million from initiative allowing expats to import customs-free cars; deadline on 14 May

CAIRO - 8 April 2023: The Egyptian government has attracted $385 million from expatriates as part of an initiative allowing them to import cars for personal use free of customs duties and taxes in exchange for a deposit in foreign currency.

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

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

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

The initiative, approved by the Cabinet in October, allows expats to not pay custom 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 five-year-term ends, expats will be given back the money with local currency, the Egyptian pound, without interests.

Egyptian expats under the law should have valid residence permits abroad, bank accounts that are not less than three months old, and must not less than 16 years old.

The government launched late last year the Egyptians Expats Cars app on both Android play store and iOS app store to allow the expats to apply for the initiative.

Minister of Finance Mohamed Maait has said the government works on attracting LE 50 billion ($1.6 billion) within the framework of the initiative.

The move came amid Egypt’s efforts to face the implications of the Russia-Ukraine war on its economy, including a drop in the country’s foreign currency reserves.