Monday, November 29

An expected 10% increase in the prices of mobile phones after the increase in customs

11:44 AM

Tuesday 23 November 2021

Books – Alaa Hajjaj:

Basem Mujahid, CEO of Raya Trading and Distribution, and agent of a number of mobile phone brands, said that the prices of mobile phones are expected to rise during the coming period by a rate equivalent to the value of the customs tax 10%.
Yesterday, the Official Gazette published President Abdel Fattah El-Sisi’s decision No. 558 of 2021 to amend some categories of customs tariffs.

The decision included the imposition of a 10% customs tax on mobile phones, which was exempted from this item over the past years.

The state receives 5% on imported phones as a development fee, 5% for the National Telecommunications Regulatory Authority (NTRA) and 14% as a value-added tax, and a 10% customs tax was added, raising the total fees imposed on imported phones to 34%, in the absence of a competing local manufacturer. With the exception of Seiko, which started manufacturing homemade smart phones, the experiment did not achieve the hoped-for success.

Mujahid added to Masrawy, that the profits of mobile phones do not exceed 1% of the value of selling the mobile, and merchants rely on achieving large sales to achieve a good profit margin, and therefore there is no room for companies and agents to absorb the new increase in the cost of mobile and related to customs tax.

Mujahid believes that the rise in the prices of mobile phones in the market will change rapidly with an increase during the coming period due to the lack of sufficient stock in companies due to the global crisis related to the lack of chips, as well as the crisis of supply and supply chains, which resulted in the lack of stock at agents and companies at the old prices, which portends a rapid increase in prices.

Reference-www.masrawy.com

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