FILE - Egyptian Parliament
CAIRO – 20 February 2023: House of Representatives’ planning and budget committee approved a new amendment to law no.147 for 1984 in Monday's session, lifting taxes imposed on production components for mobile phones, in order to encourage local production.
The amendment aims to lift the tax of “advancing financial resources” off both the components needed for local mobile phones production and the locally manufactured end product, while maintaining the same tax on imported counterparts used for commercial gains.
Head of the Egyptian Customs Authority, Al-Shahat Al-Ghatouri, stated that previously, customs taxes on imported mobile phones were zero, which played a big part in discouraging local production. However, this has changed when a 10 percent tax was imposed, sparking interest in local production.
When asked by senators about the potential of the industry, Al-Ghatouri revealed that there’s an already operating factory located at the 10th of Ramadan industrial area, with a manufacturing capacity of 100 thousand units per month, in addition to another factory located in Assiut city, which is currently inactive.
Furthermore, he pointed out that the new amendments came in light of the discussions between the Egyptian cabinet and the manufacturing companies who suggested lifting taxes to encourage local production, revealing that three global companies are ready to start immediate manufacturing following the lift on taxes.
Previously, the Egyptian cabinet approved proposing the new amendment, conditioning the benefitting companies to include 40 percent of local components in its end product, as well as exporting 40 percent of the total production.