Expat car-for-FX scheme extended to May: The Cabinet has approved a two-month extension to its expat car-for-FX scheme, which has so far failed to gain traction among Egyptians abroad. The program, which was supposed to end in the middle of March, will now remain open until mid-May, giving people more time to sign up, Parliamentary Affairs Minister Alaaeddin Fouad told MPs yesterday.His statements came during a meeting held by the House Budget Committee yesterday to continue discussing how to increase participation in the scheme.

REFRESHER- The scheme provides incentives to Egyptians living abroad to purchase cars 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

Three months in and it is yet to get off the ground: The scheme has brought in just USD 202 mn since its launch in November, just 8% of the original USD 2.5 bn target, the Finance Ministry said (pdf) this week. The head of the Customs Authority last week put the figure at USD 38.5 mn. Some 42k people have now registered with the scheme, 12k of which have paid, according to the ministry.

Another two months: “The cabinet took note of last week's amendments introduced by MPs, but it decided that expats will have six months to take advantage of the initiative and pay their dues to the Finance Ministry," Fouad said. Some lawmakers last week had called for the scheme to be extended until the middle of May.

Some aspects of the bill remain up for debate: MPs have not agreed on a response to a proposal to grant Egyptians living in the Gulf a 50% discount on taxes and customs, House Planning and Budget Committee Deputy Chairman Yasser Omar said on Kelma Akhira last night (watch, runtime: 7:25). “Discussions [yesterday] saw a legal argument over an article offering 50% to expats in the Gulf,” he said. The measure was put forward to help buyers in the Gulf vis a vis their Europe-based counterparts who don’t have to pay customs duties when importing cars to Egypt. The debate will be settled next week when the House reconvenes, he said.

What’s next: The amendments will make their way to the House to be up for a final discussion and vote when it reconvenes on Monday, 27 February.

ALSO FROM THE HOUSE–

Temp licenses for industrial projects approved by House committee: The House Industrial Committee approved yesterday a government-drafted bill that would allow unlicensed industrial projects to obtain temporary licenses. Their approval comes one day after the Senate greenlit the bill in a bid to provide temporary relief to the informal businesses. The House Budget Committee will prepare a report on the bill to be up for a final discussion and vote when the House reconvenes on Monday 27 February.

Committee green-lights development fee exemption for phone components: The House Budget Committee approved a recent decision by the cabinet to exempt mobile phone components from the 5% development fee. The move is designed to encourage the local manufacture of the components and lower the industry’s reliance on imported goods.

FROM THE SENATE-

Gov’t could hike local wheat prices: The Cabinet may raise local wheat procurement prices again, Agriculture Minister El Sayed El Quseir told senators yesterday. "I would like to indicate that the government is currently revising the wheat purchase price and that there could be a new increase when the delivery season begins," he said. His statements came in response to many senators calling for higher purchase prices to encourage increased production.

REMEMBER- The suggestion of a new increase comes nearly a month after the government raised local wheat procurement prices by 40% to EGP 1.25k per ardeb for the coming season.

Mic drop: The Senate adjourned this week's sessions yesterday, and is set to reconvene on Sunday, 5 March.