Egypt collects $385m through ‘cars-for-deposit’ initiative

Egypt has collected $385 million through an initiative that lets Egyptians living abroad import cars customs-free when they deposit hard currency in five-year certificates of deposit (CDs).

Finance minister of Mohamed Maait said that 600 cars had been released so far to Egyptians living abroad who signed up for the initiative.

He added that the government has been receiving nearly 3,000 requests to import cars under the initiative.

The deadline for receiving requests is May 14, Ahram Online said.

The ‘cars-for-CDs’ initiative was launched in October 2022 to draw hard currency.

The government expected the initiative to bring in as much as $2.5 billion in revenue to the treasury.

The legislation allows Egyptians over 16 with valid residence permits and a bank account in a foreign country to import one ‘private passenger car for personal use’ within five years of registering in the initiative.

Those who enrol in the initiative must invest the value of saved customs duties and taxes in foreign currency in an interest-free five-year CD.

The deposit is paid back in Egyptian pounds after the term expires.

Moreover, Egyptians, who live in countries that do not have trade agreements with Cairo, can register in the initiative to get a 70 percent discount on customs duties.