Sherif Elkilany, Vice Minister of Finance for Tax Policies, announced in an interview with the Information and Decision Support Centre (IDSC) on Wednesday that Egypt will soon launch a new initiative to address the growing issue of mobile phone smuggling.
“This initiative was launched in response to the widespread phenomenon of mobile phones entering the country illegally, which has significantly impacted the nation’s public treasury. Currently, 95 percent of mobile phones entering Egypt are smuggled, while only five percent pay the required customs duties,” Elkilany explained.
To combat this, the Egyptian government has developed an electronic application that will allow individuals to register their mobile phones without incurring additional customs fees. However, while individuals will not need to pay taxes on a single personal phone, those bringing in more than one phone at the airport will be required to pay customs duties, estimated at 38.5 percent.
Phones that are brought into the country without registration will receive a notification demanding payment of customs fees within 90 days. If the fees are not paid within this period, the smuggled phones will be deactivated.
Several countries, including India, Brazil, Indonesia, Turkey, and EU member states, impose customs duties or taxes on imported mobile phones, with the rates varying depending on local regulations and the device’s value.