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Egypt is considering a new legislative framework that would lower the cost of vehicles provided to young people under the national youth employment project managed by the Tahya Misr Fund.

The proposed legislation is due to be discussed by the House of Representatives’ Planning and Budget Committee on Monday, with Finance Minister Ahmed Kouchouk attending the meeting.

The plan is designed to make taxis and transport vehicles more affordable for young beneficiaries seeking to establish small income-generating businesses, while providing access to facilitated financing arrangements.

Five Taxes and Fees Covered by the Treasury

The proposed framework would see Egypt’s state treasury cover customs duties, value-added tax, schedule tax, stamp duty and the state financial resources development fee on qualifying vehicles.

The treatment would apply to locally manufactured vehicles that incorporate imported components and are allocated to the national youth employment initiative.

Reducing these tax and fee costs is expected to allow the Tahya Misr Fund to offer vehicles at prices below comparable market levels.

Natural gas-powered taxis and light pickup trucks are included in the initiative, while beneficiaries would have access to installment schemes with reduced interest rates covering vehicle insurance and the risk of payment default.

Vehicles Cannot Be Resold for Seven Years

The proposed law includes safeguards aimed at ensuring that the financial benefits reach their intended recipients.

Beneficiaries would not be permitted to sell, transfer or otherwise dispose of the vehicles for seven years after the first licence is issued, or until outstanding installments have been fully repaid, whichever is later.

Using a vehicle for purposes outside those specified by the initiative would also lead to the withdrawal of the preferential treatment and require its return to the Tahya Misr Fund.

Framework Could Support Future Initiatives

The Prime Minister would be responsible for determining which vehicles and components fall under the legislation and setting implementation procedures, following a proposal by the Finance Minister and coordination with relevant authorities.

The legislation would enter into force the day after its publication in the Official Gazette once it has completed the required legislative process.

The framework is also designed to enable similar initiatives to be introduced in the future and potentially extend the special treatment to additional vehicle categories, expanding access to employment opportunities and supporting small enterprises.