New Details on the “Mobile Tax” – Will It Raise Phone Prices?

In a recent update regarding the much-discussed “mobile tax” in Egypt, Mohamed Talaat, head of the Communications and Mobile Division at the Federation of Egyptian Chambers of Commerce, shared some important details. According to Talaat, the National Telecommunications Regulatory Authority (NTRA) has not yet announced when the new regulations regarding imported mobile phones will come into effect.

While the tax on mobile phones imported into Egypt—set at 38.5% of the phone’s value—is an old decision, there’s a new twist: only one personal phone per traveler will be allowed into the country without facing additional taxes. Talaat explained that while this rule is new, it hasn’t been enforced yet.

What Does This Mean for Egypt’s Mobile Market?

Talaat further clarified that the new tax rules aim to benefit the Egyptian market by encouraging people to purchase phones through official channels, rather than relying on unofficial imports from traders. This, in turn, is expected to give official distributors and retailers a boost, helping reduce the black market for phones.

However, Talaat assured that once the decision is fully implemented, it shouldn’t cause any major increase in mobile phone prices. So, there’s no need to panic about paying higher prices for your next phone.

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What Will Happen to Unregistered Phones?

In addition to the tax, the government has plans to work with telecom companies to prevent unregistered phones from accessing mobile networks after a 90-day grace period. Once the registration period expires, phones that haven’t been registered will no longer work on local networks, ensuring that all phones in Egypt are officially tracked and documented.

For users bringing in a new phone, they’ll also need to ensure that the phone is properly registered, especially if they use an eSIM, as it will require registration upon arrival in Egypt.

Still a Little Time Left

Talaat emphasized that while the regulations are coming, they are not in effect yet. For now, travelers can still bring in more than one phone without facing additional taxes. However, once the rules are activated, they’ll need to ensure they’re in compliance.

So, while these changes may cause a shift in the way we buy phones, the impact on prices is expected to be minimal, and the aim is to ensure that phones purchased in Egypt are done so through official channels. Stay tuned for further updates from the authorities on when these regulations will come into full force!