FinMin deputy shares fresh details on the customs on imported mobile phones

Learning more about the new fees on phones imported through unofficial channels: Deputy Finance Minister for Taxes Sherif Al Kilani virtually joined El Hekaya’s Amr Adib (watch, runtime: 14:20) to explain the mechanism of applying the newly-introduced customs and tax fees on mobile phones imported through unofficial channels.

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ICYMI- Imported mobile phones will be subject to customs and tax fees totaling 38.5% — including a 5% development fee tax — as part of incoming government regulations to support the country’s mobile phone manufacturing localization efforts.

A 90-day window: Every person coming from abroad will be allowed to enter the country with their personal mobile phone, while every additional phone on the person will be subject to the new fees, Al Kilani said. If the fee is not settled within 90 days of entering the country the phone will be disconnected from network services.

But why? Some 95% of the mobile devices entering the country bypass official channels, Al Kilani said. “This results in an estimated monthly loss of USD 100 mn in uncollected customs.”

ALSO ON THE AIRWAVES- Adib covered (watch, runtime: 18:05) last week’s meeting between Prime Minister Moustafa Madbouly and private sector heavyweights where they discussed the challenges facing the private sector and the measures private sector players want from the state in the years to come. Finally, “someone is speaking out and the government is listening,” Adib said, calling the government to “let the people speak up” and exit the economy in favor of the private sector. “We need to see the private sector in charge of 70% of the economy,” he added.