{"id":581987,"date":"2023-02-28T00:00:00","date_gmt":"2023-02-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/28\/mps-give-initial-approval-to-extending-expat-car-import-scheme-for-2-months\/"},"modified":"2023-02-28T00:00:00","modified_gmt":"2023-02-28T00:00:00","slug":"mps-give-initial-approval-to-extending-expat-car-import-scheme-for-2-months","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/02\/28\/mps-give-initial-approval-to-extending-expat-car-import-scheme-for-2-months\/","title":{"rendered":"MPs give initial approval to extending expat car import scheme for 2 months"},"content":{"rendered":"

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<\/span>House gives initial nod to expat car import scheme extension:<\/span> MPs have given preliminary approval to a proposal to <\/span>extend the government\u2019s expat car import scheme<\/a><\/span> by two months<\/span> amid <\/span>low participation<\/a><\/span>. The program was set to expire in mid-March but will now end on 12 May if the amendments are passed in a final vote in the general assembly. <\/span><\/p>\n

REFRESHER<\/span>- The <\/span>scheme<\/a><\/span> provides incentives to Egyptians living abroad to purchase cars <\/span>overseas and import them into Egypt, and was designed by policymakers to bring more FX into the country. Under the rules, expats will receive full rebates on customs fees, VAT, and other taxes within five years of purchasing a vehicle, provided they pay them upfront in FX. <\/span><\/p>\n

Why the extension?<\/span> The government approved the extension to allow for a greater number of <\/span>expats to sign up for the scheme and <\/span>pay the dues in FX to the Finance Ministry, Parliamentary Affairs Minister Alaaeddin Fouad told MPs yesterday. Four months \u201cis a short period of time that made it difficult for many expats, particularly those in the Gulf, to take advantage of the tax and customs exemptions offered\u2026,\u201d a report by the House Budget Committee read. <\/span><\/p>\n

Weak demand:<\/span> As of last week the scheme had brought in just USD 202 mn since <\/span>its launch<\/a><\/span> in <\/span>November, a fraction of the Finance Ministry\u2019s <\/span>USD 2.5 bn target<\/a><\/span>.<\/span><\/p>\n

And that\u2019s not all:<\/span> The amendments give <\/span>expats five years to bring their vehicles into the <\/span>country instead of one year. The age of vehicles imported under the scheme should not exceed three years by the time of customs clearance under the changes. <\/span><\/p>\n

Good news for expats in the Gulf?<\/span> <\/span>MPs approved a 70% <\/span>discount on customs duty<\/a><\/span> for expats <\/span>living in countries not subject to mutual customs agreements<\/span>, the Emigration Ministry said in <\/span>a statement<\/a><\/span> yesterday<\/span>. They will now pay 30% of the customs duty under the scheme. <\/span><\/p>\n

Already paid?<\/span> <\/span>You\u2019ll be reimbursed the difference within six months<\/span>, House Planning and <\/span>Budget Committee Deputy Chairman Yasser Omar said in a televised interview last night (<\/span>watch, runtime: 14:55<\/a><\/span>).<\/span><\/p>\n

Is any of this going to make a difference? Some MPs don\u2019t think so.<\/span> The scheme has <\/span>never been an attractive proposition for expats and the latest amendments are unlikely to make a difference, Mostaqbal Watan <\/span>MP Mahmoud Qassem <\/span>said yesterday. \u201cThis bill will remain ink on paper even after we change it,\u201d he said.<\/span><\/p>\n

What\u2019s next:<\/span> The amendments are expected to be put up for a final vote in today\u2019s session.<\/span><\/p>\n

ALSO GETTING A NOD<\/span>- MPs gave initial approval to legal amendments that would <\/span>exempt<\/a><\/span>mobile phone components<\/a><\/span> from the 5% development fee. The move is designed to encourage the local manufacture of the components and lower the industry\u2019s reliance on imported goods.<\/span><\/p>\n

What\u2019s next:<\/span> The bill will likely return to the general assembly today for a final vote.<\/span><\/p>\n

ALSO FROM THE HOUSE- <\/span><\/p>\n