Egypt Finance Minister Mohamed Maait forecasts that a total of US$2.5bn will flow into the Egyptian economy due to the expat customs-free car import initiative.
The initiative allows Egyptians living abroad to have one personal-use vehicle shipped to Egypt without having to pay customs duties or taxes. According to the draft law, expats can invest the value of saved customs duties and taxes in foreign currency in a five-year certificate of deposit, but without earning interest.
These expats will be able to recover the deposit in Egyptian pounds at its price at the end of the period. The exemptions are valid for a four-month period starting on the day the law comes into effect. The initiative is the latest measure by Egyptian authorities to try to boost foreign exchange reserves that have come under pressure this year.