{"id":579075,"date":"2023-01-24T03:55:51","date_gmt":"2023-01-24T03:55:51","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/"},"modified":"2023-01-24T03:55:51","modified_gmt":"2023-01-24T03:55:51","slug":"local-mobile-manufacturers-could-soon-catch-a-tax-break","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/","title":{"rendered":"Local mobile manufacturers could soon catch a tax break"},"content":{"rendered":"

<\/a> Fresh tax incentives for local mobile phone assemblers? <\/strong>The Finance Ministry is considering cutting a 5% development fee on imported mobile phone parts as the Madbouly government pushes to localize electronics<\/a>assembly<\/a>, a source at the ministry tells Enterprise.<\/p>\n

The problem? The taxman rings twice (or more) on locally assembled phones. <\/strong>Fully assembled mobile phones, parts, and components alike are subject to a 5% development fee, part of a set of fees<\/a> on imports that the government brought in to help plug the fiscal deficit amid the pandemic. That means that local handset assemblers pay 5% on imported parts in addition to another 5% once the handsets are put together \u2014 on top of VAT, customs duties, and other taxes. FinMin is now looking at scrapping the 5% fee on imported parts.<\/p>\n

The local mobile manufacturing industry is still really young, but interest is rising: <\/strong>Egyptian electronics firm Sico Egypt<\/strong> is currently our only local smartphone assembler \u2014 but that\u2019s now changing after firms including China\u2019s Oppo<\/strong> and Vivo<\/strong> as well as HMD Global<\/strong> (which manufactures Nokia phones) have set plans in motion to enter the market. The government has been working to attract new players to the sector for several years under its Egypt Makes Electronics initiative<\/a>, which is designed to cut down on Egypt\u2019s imports of electronic products and increase our exports.<\/p>\n

And import woes make now a good time to double down: <\/strong>The local smartphone market saw \u201csevere disruption\u201d last year on the back of a government move to double tariffs on imported phones to 10%<\/a> as well as slowdown in imports thanks to the FX crunch, according to market intelligence firm International Data Corporation (IDC)<\/a>. Local smartphone sales dropped 73% y-o-y to 800k units in 3Q 2022, IDC writes. Sales are projected to rebound this year \u201cas the local assembly initiative gains momentum and the government eases restrictions,\u201d it adds.<\/p>\n","protected":false},"excerpt":{"rendered":"

Fresh tax incentives for local mobile phone assemblers? The Finance Ministry is considering cutting a 5% development fee on imported mobile phone parts as the Madbouly government pushes to localize electronicsassembly, a source at the ministry tells Enterprise. The problem? The taxman rings twice (or more) on locally assembled phones. Fully assembled mobile phones, parts, […]<\/p>\n","protected":false},"author":1,"featured_media":579076,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7385],"tags":[214,72,276,131,69,3583],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-579075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","tag-cit","tag-enterpriseam","tag-finance-ministry","tag-manufacturing","tag-tax","tag-taxation","wpautop","entry"],"acf":{"mongo_id":"f42d0041-0ae4-4ab3-9149-140fe05fbca4","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/1\/411.jpg","photo_position":"above","related_issue":[579068],"teaser":"","voice_url":""},"yoast_head":"\nLocal mobile manufacturers could soon catch a tax break - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Local mobile manufacturers could soon catch a tax break\" \/>\n<meta property=\"og:description\" content=\"Fresh tax incentives for local mobile phone assemblers? The Finance Ministry is considering cutting a 5% development fee on imported mobile phone parts as the Madbouly government pushes to localize electronicsassembly, a source at the ministry tells Enterprise. The problem? The taxman rings twice (or more) on locally assembled phones. Fully assembled mobile phones, parts, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-24T03:55:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2023\/1\/411.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Local mobile manufacturers could soon catch a tax break\",\"datePublished\":\"2023-01-24T03:55:51+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/\"},\"wordCount\":316,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2023\/1\/411.jpg?fit=%2C&ssl=1\",\"keywords\":[\"CIT\",\"EnterpriseAM\",\"Finance Ministry\",\"Manufacturing\",\"tax\",\"TAXATION\"],\"articleSection\":[\"Taxation\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/\",\"name\":\"Local mobile manufacturers could soon catch a tax break - 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The exemptions also include the final\u2026","rel":"","context":"In "Cabinet watch"","block_context":{"text":"Cabinet watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation\/cabinet-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/2\/Smartphone-1600px.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":572616,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/01\/egypts-ntra-imposes-5-fee-on-imported-mobile-phones\/","url_meta":{"origin":579075,"position":1},"title":"Egypt\u2019s NTRA imposes 5% fee on imported mobile phones","author":"enterpriseam admin","date":"1 July 2020","format":false,"excerpt":"Expect to pay more for your next mobile phone: The National Telecom Regulatory Authority (NTRA) issued a decision yesterday imposing a new 5% fee on imports of all mobile phones as of today. The fee will essentially apply to all phones sold in Egypt, with the exception of those assembled\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":572654,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/05\/your-next-phone-is-really-going-to-cost-a-lot-more\/","url_meta":{"origin":579075,"position":2},"title":"Your next phone is really going to cost a lot more","author":"enterpriseam admin","date":"5 July 2020","format":false,"excerpt":"Your next mobile phone is definitely going to cost more as it is hit with two surtaxes: Imported mobile phones look set to be hit with two new taxes after local reports suggested over the weekend that the National Telecom Regulatory Authority\u2019s 5% import fee will be imposed in addition\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":664176,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/04\/23\/local-auto-assemblers-could-be-exempt-from-development-fees\/","url_meta":{"origin":579075,"position":3},"title":"Local auto assemblers could be exempt from development fees","author":"enterpriseam admin","date":"23 April 2025","format":false,"excerpt":"Good afternoon, friends, and welcome to the end of a condensed workweek. Today\u2019s issue takes a look at the future of how manufacturing auto parts will be taxed, Trump\u2019s softening stances, and cashflow guidelines set by industry titan Warren Buffett.THE BIG STORY TODAY- Gov\u2019t mulls scrapping development fees on imported\u2026","rel":"","context":"In "WHAT WE\u2019RE TRACKING TONIGHT"","block_context":{"text":"WHAT WE\u2019RE TRACKING TONIGHT","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-tonight\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/1\/761.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":573053,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/19\/egypt-introduces-development-fees-on-mobile-phone-bills-scratch-cards\/","url_meta":{"origin":579075,"position":4},"title":"Egypt introduces development fees on mobile phone bills + scratch cards","author":"enterpriseam admin","date":"19 July 2020","format":false,"excerpt":"Mobile phone bills + scratch cards are getting a little more expensive: The Finance Ministry has introduced development fees on prepaid mobile phone scratch cards and subscription plans, Youm7 reports. The tax on scratch cards will rise to EGP 0.67 from EGP 0.51 \u2014 a 31% increase \u2014 while the\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/7\/143.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":655825,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/25\/imported-mobile-phones-could-see-customs-and-tax-fees-totalling-37-5\/","url_meta":{"origin":579075,"position":5},"title":"Imported mobile phones could see customs and tax fees totalling 37.5%","author":"enterpriseam admin","date":"25 November 2024","format":false,"excerpt":"The Finance Ministry and the National Telecom Regulatory Authority (NTRA) are in the process of finalizing the regulations","rel":"","context":"In "Customs"","block_context":{"text":"Customs","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation\/customs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/2284.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/579075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=579075"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/579075\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/579068"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/579076"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=579075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=579075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=579075"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=579075"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=579075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}