The Egyptian government has settled the ongoing controversy over the recently approved tax on imported phones. However, social media pages are witnessing more inquiries about the date of the start of implementing the fees that will be collected.
A few days ago, the Ministry of Finance and the Ministry of Communications and Information Technology in Egypt issued a joint statement about the tax discussed two months ago. The statement said a new electronic system would enhance governance and encourage and localise the mobile telephone industry.
The Egyptian government stated that a large number of international companies have begun manufacturing mobile phones of various types within Egypt. The government is ensuring fair competition and is, therefore, confronting illegal practices in the telecommunications market to benefit citizens, investors, and the Egyptian economy.
The Egyptian government also said that the fees and customs tax on imported mobile phones have not changed. Moreover, it said that every citizen coming from abroad has an exempt phone for personal use for a transitional period of three months. The government also allows citizens to register their imported mobile phones in the new electronic system via the "Telefoni" application without the need for customs employees.
The Egyptian Customs Authority said the steps for registering a mobile phone online are threefold. First, download the Telefoni application; second register personal data, including passport and mobile phone number, and third, pay any fees and register any exemption requests.
Telefoni application
This new electronic system ensures governance, inquiry, registration, and electronic payment of any fees due. It also protects citizens from smuggled, counterfeit, and non-compliant mobile phones by enabling electronic inquiry about the original device codes.
The new system applies to the latest imported mobile phones and does not apply to phones activated before January 1. It is not applied retroactively.
Controlling the illegal market
Mohamed Talaat, head of the mobile division at the Federation of Chambers of Commerce, said that the date that customs duties on imported mobile phones would come into force has not yet been determined. He said: "Anyone coming from abroad with a mobile phone for personal use will not pay any customs on it, and if a person owns two phones, he will pay customs on one, and the other will be exempt."
Talat added: "Any phone imported from abroad with two lines will receive a message stating that it has customs dues, so anyone with a phone with two lines must activate both lines." He also said owners of mobile phones imported from abroad will not be held accountable retroactively, explaining that the 38.5 percent rate has been in place for some time and is not new. However, what is new is that devices entered illegally are subject to customs duties. He said this would eliminate the smuggling of phones from abroad and serve the local industry. There are five companies in the local market.
"iPhone" and "Samsung
The Egyptian Customs Authority, in cooperation with the National Telecom Regulatory Authority, launched the Telefoni application for iPhone and Android devices to register mobile phones imported from abroad. The application aims to register data on mobile devices imported for personal use. All phones will only work for 90 days and will be stopped if customs duties are unpaid.
The customs duties on the iPhone 16 Pro Max will be about EGP 40,000 (USD 786), making its official price in Egypt EGP105,000 (USD 2078). The customs duties on the iPhone 16 phone are about EGP 27,700 (USD 545.8), making it EGP 72,000 (USD 1416.7). The value of customs duties due on the Samsung S24 phone is EGP 20,000 (USD 394), and its price is about EGP 50,000 (USD 985).
Photo: The Egyptian government is ensuring fair competition. (by Adobe)