Explainer: How Can Egyptians Overseas Import Tax-Free Vehicles to Egypt?
Picture credit score: iSeeCars
For years, Egyptians dwelling overseas struggled with importing their automobiles to Egypt on account of customs, taxes amongst different numerous problems. In October 2022, the Egyptian cupboard accepted the tax-free automotive import initiative, which permits Egyptians dwelling overseas to import vehicles to Egypt, primarily based on a set of situations.
Beneath this initiative, Egyptians who’re above 16 years previous, and with a legitimate residency and financial institution accounts overseas, can import one automotive with a restricted charge and eased rules. To profit from this initiative, an Egyptian expat has to pay 30 p.c of the customs tax worth of the car, whole improvement charge, and whole worth added tax (VAT), by way of an interest-free certificates of deposit in overseas foreign money. After 5 years, this quantity shall be paid again in Egyptian kilos with out curiosity, in keeping with the change price at the moment.
New or second-hand, the automotive, which will be imported over 5 years, ought to be a mannequin between 2019 and 2024.
After a number of amendments to the initiative, its deadline was prolonged. Initially, the initiative was launched in October 2022 for a brief, restricted interval of 4 months. Nevertheless, after requests and pleas from Egyptians overseas, the deadline was prolonged to 14 Might 2023.
To ease the method for these , a cell utility was launched on the App Retailer and on Google Play. It permits customers to request to import a automotive from their nation of residence, calculate charges, and observe the method till the import approval is issued.
The federal government expects to draw USD 2.5 billion by way of this initiative. At a time when the nation is battling a scarcity of overseas foreign money, the enterprise could also be mutually useful for each the nation’s economic system and its residents overseas.
Between 10 and 14 million Egyptians stay overseas. Accordingly, Egypt counts as one of many largest recipients of remittances from overseas and the latter have considerably contributed to the nation’s economic system. Moreover, remittances are a significant supply of laborious foreign money.
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