Egypt’s tax-free car import initiative generates $685M in revenues

CAIRO – 17 March 2024: Egypt has collected $685 million from the second phase of the tax-free car import initiative since its launch in October of last year. El-Shahat Ghatoury, the Head of the Egyptian Customs Authority (ECA), revealed these figures in an interview with Asharq Business.

 

Ghatoury further informed that payment orders had reached $1.6 billion by the end of the previous week, with a total of 464,000 beneficiaries having availed themselves of the initiative.

 

Minister of Finance, Mohamed Maait, announced that 25,000 cars have been released as part of the car import initiative. The minister emphasized the government's commitment to streamline the procedures and provide necessary assistance to ensure Egyptians abroad can benefit from this opportunity and its accompanying benefits. 

 

Minister Maait stated that 250,000 import approvals have been issued, valid for a period of five years. This means that approved individuals can choose any car and replace it at their convenience during this period.

 

Elaborating on the registration process, Head of the Customs Authority, Al-Shahat Ghatoury, disclosed that 470,000 Egyptian citizens residing abroad have already registered their applications through the electronic platform designed for the car import facilitation initiative. These individuals have created digital accounts, provided their personal information, uploaded necessary documents, and received notifications regarding applicable fees.

 

Additionally, the ministry aims to establish direct communication channels with individuals interested in importing cars in accordance with the prescribed regulations. Moreover, the initiative allows multiple family members to participate, provided they meet the necessary criteria.

 

Explaining the financial aspects of the initiative, the Minister highlighted the value of the deposit, which represents the reduced customs tax applicable to cars imported under this program. The deposit remains valid throughout the entire duration of the import approval. The first owner of the vehicle is not restricted by the manufacturing year, while subsequent owners must adhere to a three-year limit. The customs release time for imported cars should not exceed three years.