Egypt announced it will extend the expat car import initiative for three months after the House of Representatives has approved the bill.
The decision shows the government’s commitment to support the program.
Egyptians staying abroad are allowed to import cars without paying any taxes, but with a condition: they have to deposit an equivalent amount in a five-year foreign currency certificate of deposit.
The extension of the initiative was a success and the country benefited from the flow of hard currency; it also helped expats import vehicles without the burden of taxes.
The initiative is expected to generate approximately $1.1 billion in hard currency receipts, according to the government’s announcement.
The statement said the Cabinet will have the authority to extend the program for another three months if needed.
According to law, Egyptians seeking to proceed within the initiative must possess a valid legal residence abroad and should not have previously used the benefits offered by the program.
The foreign currency required for the transfer is collected according to the type and model of the car being imported.
The extension of the expat car import initiative enables expats to invest in Egypt, helping the country increase its foreign currency reserves.
Egypt’s foreign currency reserves dropped by more than $7 billion last year amid the Russian-Ukraine war. Egypt has devalued its currency three times since March of 2022 as a flexible response to global trade.
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