{"id":550092,"date":"2022-10-13T03:40:31","date_gmt":"2022-10-13T03:40:31","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/13\/egyptian-expats-get-new-cars-finmin-gets-fx-more-buildings-up-for-reconciliation\/"},"modified":"2022-10-13T03:40:31","modified_gmt":"2022-10-13T03:40:31","slug":"egyptian-expats-get-new-cars-finmin-gets-fx-more-buildings-up-for-reconciliation","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/13\/egyptian-expats-get-new-cars-finmin-gets-fx-more-buildings-up-for-reconciliation\/","title":{"rendered":"Egyptian expats get new cars, FinMin gets FX + More buildings up for reconciliation"},"content":{"rendered":"

<\/a> Egyptian expats are going to be able to import new cars on the cheap \u2014 in return for h<\/strong>elping the state raise FX: <\/strong>Egyptians who are resident abroad will be able to import a new car and eventually get a full rebate on all customs fees and taxes \u2014 if they pay the dues upfront in FX, according to a cabinet statement<\/a>. The cabinet decision will make it easier and cheaper for expats to import new cars while helping the state raise USDs amid an ongoing FX shortage.<\/p>\n

A major tax break \u2014 with a twist:<\/strong> The car owner pays their vehicle import fees \u2014 including customs fees, VAT, and other taxes \u2014 upfront to the Finance Ministry in FX when they import the new car. They will then receive a full rebate on the dues in five years\u2019 time in EGP, at the USD-EGP exchange rate at that time and without interest.<\/p>\n

REMEMBER- It\u2019s all but impossible to get your hands on a new car right now. <\/strong>The market has been hit by rules<\/a>requiring importers to get letters of credit (L\/Cs)<\/a> that limited imports to a handful of essential goods, leaving new cars and car parts stranded at ports and pushing a number of global car manufacturers<\/a> to suspend sales here.<\/p>\n

So who\u2019s eligible?<\/strong> Expats must hold a valid foreign residency permit and foreign bank account. Each expat can import one car for their personal use, which must be new or less than three years old if used.<\/p>\n

There\u2019s a time limit: <\/strong>Once the decision goes into effect, expats only have four months to pay their dues to the FinMin. They\u2019ll then be given a year to import their car of choice.<\/p>\n

How much money are we talking about? <\/strong>Customs fees can run as high as 135% of the value of a new car, depending on the country of origin. Add to that a 15% schedule tax and a 14% VAT. It\u2019s a little lower for hybrid cars, which pay between 30-100% of their cost in customs, a 15-30% schedule tax and a 14% VAT. EVs are exempt from taxes and customs.<\/p>\n

More details to come: <\/strong>After the decision is passed, FinMin and the central bank will share the required fees and accepted currencies according to vehicle type.<\/p>\n

This won\u2019t be the first time Egyptians working abroad help us secure hard currency: <\/strong>Remittances are a key source of FX inflows for Egypt, recording some USD 31.9 bn<\/a> during the last fiscal year.<\/p>\n

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A NEW WINDOW FOR WILDCAT BUILDERS TO GO LEGIT-<\/strong><\/p>\n

Owners of illegally built buildings could have another chance to legalize what they\u2019ve <\/strong>built, <\/strong>after cabinet yesterday approved a draft law that widens the scope for property owners in violation of the building code to pay \u201creconciliation fees\u201d<\/a> to the government to legalize their buildings, according to a statement<\/a>. The draft bill allows for more owners of illegal buildings to enter the reconciliation process, provided that their buildings are structurally sound and not built on land protected<\/a> by the Nile Protection Law<\/a> or the Antiquities Protection Law.<\/p>\n

Exceptions \u2014 at a cost: <\/strong>The cabinet could allow reconciliation for buildings along the Nile or on land protected by the antiquities law if, for example, they are difficult to remove \u2014 but owners will pay triple the usual reconciliation fee, Cabinet Spokesman Nader Saad said in an interview with Bel Warak W El Kalam (watch, runtime: 10:20<\/a>).<\/p>\n

Similar, but not the same:<\/strong> Separate amendments to the Unified Building Code designed to crack down on unlicensed construction \u2014 which would also widen the types of properties eligible for reconciliation \u2014 are currently making their way through<\/a> the House. The House\u2019s Legislative and Constitutional Affairs Committee also last week approved<\/a> amendments to the Agriculture Act introducing harsher penalties for illegally building on agricultural land.<\/p>\n

Gov\u2019t officials have in recent months pledged to adopt <\/strong>a zero-tolerance stance<\/a><\/strong> towards new illegal construction, taking food subsidies<\/a> away from those who build illegally and referring people who illegally build on the Nile to military prosecution<\/a>. The reconciliation drive is expected to bring in c. EGP 72 bn to state coffers from around 1.8 mn buildings that are in violation of existing codes.<\/p>\n

The cabinet also <\/strong>approved<\/a><\/strong>:<\/strong><\/p>\n