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Egypt’s House of Representatives’ planning and budget committee approved on February 20th, a new amendment to law no.147 for 1984. The amendment will lift taxes imposed on production components for mobile phones.
Egypt’s House of Representatives planning and budget committee approved on February 20th, a new amendment to law no.147 for 1984. The amendment will lift taxes imposed on production components for mobile phones. The move is expected to encourage local production.
According to the amendment, the tax on the components needed for local mobile phone production and the locally manufactured end product will be lifted. However, the same tax will continue to be imposed on imported counterparts used for commercial gains.
According to the Head of the Egyptian Customs Authority, Al-Shahat Al-Ghatouri, earlier, customs taxes on imported mobile phones were zero which discouraged local manufacturing. When a 10 percent tax was imposed, interest in local production was kindled.
Al-Ghatouri revealed that the proposed amendments were based on discussions between the Egyptian cabinet and the manufacturing companies. The manufacturers advocated the lifting of taxes to encourage local production and disclosed that three global companies were ready to start immediate manufacturing subject to the lifting of taxes.
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According to reports, a factory with a manufacturing capacity of 100 thousand units per month is already operating in the Ramadan industrial area, while another factory located in Assiut city, is currently inactive. Earlier, the Egyptian cabinet had proposed that the benefitting companies should include 40 per cent of local components in their end product, as well as export 40 percent of the total production.
