{"id":655825,"date":"2024-11-25T00:00:00","date_gmt":"2024-11-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/25\/imported-mobile-phones-could-see-customs-and-tax-fees-totalling-37-5\/"},"modified":"2024-11-25T00:00:00","modified_gmt":"2024-11-25T00:00:00","slug":"imported-mobile-phones-could-see-customs-and-tax-fees-totalling-37-5","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/25\/imported-mobile-phones-could-see-customs-and-tax-fees-totalling-37-5\/","title":{"rendered":"Imported mobile phones could see customs and tax fees totalling 37.5%"},"content":{"rendered":"

That new iPhone you\u2019ve been saving up for might just be about to get a whole more <\/strong>expensive:<\/strong> Imported mobile phones could be subject to customs and tax fees totaling 37.5% \u2014 including a 5% development fee tax \u2014 as part of incoming government regulations to support the country\u2019s mobile phone manufacturing localization efforts, a high ranking government source told EnterpriseAM. The National Telecom Regulatory Authority (NTRA) and the Finance Ministry are in the process of finalizing the regulations and the decision will not be applied retroactively, the source said.<\/p>\n

How it would work:<\/strong> Once a phone is activated with a new SIM card, users will have a three-month grace period before they receive a notification requiring the prompt payment of the customs and tax fees \u2014 failure to pay will result in service suspension, the source said. Devices will function normally after users pay the required fees and register the phone\u2019s serial number.<\/p>\n

There could <\/strong>be exemptions: <\/strong>The government is looking into setting an exemption limit depending on the value of the mobile phone being imported, with the proposed charges for phones costing EGP 15k or higher, the source added. Egyptian expats, tourists, and non-residents would be exempt from the ruling, unless they establish a permanent residence in the country.<\/p>\n

Addressing smuggling is one of the goals:<\/strong> Egypt faces a great deal of smuggling of mobile phones, the source said, revealing that 99% of phones currently operating in Egypt are unregistered \u2014 which causes the state annual losses of between EGP 5-6 bn annually.<\/p>\n

It could also boost local companies\u2019 business:<\/strong> Egypt\u2019s import of mobile phones during the first 7 months of the year were up 6.4% y-o-y, according to state information agency Capmas, a rise that has caused local firms to issue complaints to the government over not being able to compete due to both the emphasis on imports and issues related to smuggling.<\/p>\n

The gov\u2019t is looking to further localize mobile phone manufacturing:<\/strong> The finance and CIT ministries are preparing to launch an initiative<\/a> to offer incentives to local mobile manufacturers that aim at increasing the local components of mobile phones produced locally. The two ministries are in the process of developing a five-year plan with companies to manufacture 100 mn devices annually \u2014 25% of which to be allocated for the local market and the remaining 75% for export, the source told us.<\/p>\n

** You can check out our Inside Industry rundown of the localization of our smartphone<\/strong> industry <\/strong>here<\/a><\/strong>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The Finance Ministry and the National Telecom Regulatory Authority (NTRA) are in the process of finalizing the regulations<\/p>\n","protected":false},"author":1,"featured_media":655826,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","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":[7226],"tags":[309,72,7448,132],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-655825","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","tag-customs","tag-enterpriseam","tag-tech","tag-trade","wpautop","entry"],"acf":{"mongo_id":"b4dd8203-fbef-4b21-a7e1-fede50d77192","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/11\/2284.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Mobile 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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\u2026","rel":"","context":"In "Taxation"","block_context":{"text":"Taxation","link":"https:\/\/enterpriseam.com\/egypt\/category\/regulation\/taxation\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/1\/411.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\/655825","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=655825"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/655825\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/655817"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/655826"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=655825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=655825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=655825"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=655825"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=655825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}