The Council of Ministers has given its nod to a draft law designed to expand opportunities for Egyptians living abroad, enabling them to reap benefits from specific import facilities.
In a recent turn, the Automotive Division has urged the Finance Ministry to revoke the stipulation that cars must be shipped exclusively from an expatriate’s country of residence.
Dr. Mohamed Maait, the Minister of Finance, is set to receive a proposal from the General Division for Cars, under the Cairo Chamber of Commerce. This proposal emphasizes the need to abolish the said shipping restriction. It suggests that Egyptians overseas should have the freedom to ship vehicles directly from their place of purchase.
Reaffirming their support for overseas Egyptians, the Council announced their approval of a renewed initiative. This allows Egyptians to benefit from the import facilitations as outlined in the 2022’s Law No. 161.
Major General Nour Darwish, the Division’s Deputy Chief, highlighted that the forthcoming memorandum will propose various enhancements to the initiative. The prime focus will be to make the import process more accommodating for the majority of Egyptians working abroad. A salient feature will be the elimination of restrictions tied to the country of residence for car imports, promoting direct shipping from the purchase location.
The updated draft law stipulates that all legally residing Egyptians abroad, who haven’t availed of the earlier initiative, can import cars under the same favorable conditions. Once the House of Representatives greenlights this law, its tenure will span three months, with a potential extension of a similar duration.
Historically, the initiative allowed any legally residing Egyptian abroad to import a single personal vehicle, granting tax and fee exemptions. However, an equivalent of these exemptions was to be deposited in US dollars, interest-free. This amount would be refundable after five years, converted into Egyptian pounds based on the prevalent exchange rates.
A notable condition was that imported vehicles had to originate from the expatriate’s residential country.
Amir Hilali, who presides over the Importers Committee at the Automotive Division, articulated that this revived initiative would offer a second chance to those expatriates who missed out earlier, contingent upon them meeting the set criteria.
Hilali projected a bright financial horizon, anticipating the influx of significant dollar revenues akin to the past when the initiative successfully amassed nearly a billion dollars.
Highlighting the wider benefits, the Chief of the Importers Committee emphasized the economic significance of unrestricted car imports and direct shipping for maximizing benefits for Egyptians overseas and bolstering the nation’s foreign currency reserves.
Tracing back to November 2022, the Ministry of Finance rolled out an ambitious campaign titled “Facilitating the Importation of Egyptian Cars Abroad”, with a revenue target of $2.5 billion. Despite the high hopes, by its conclusion in May, it secured just over a third of its aim, standing at $900 million.
The five-month-long initiative, which drew the participation of approximately 170,000 overseas Egyptians, was met with critiques at its inception. This led the government to undertake revisions in March.
