On Wednesday, the Egyptian government announced that new taxes on imported mobile phones will take effect for devices entering the country starting January 1, 2025. This initiative aims to regulate the mobile phone market while enhancing the overall tax framework. Importantly, the newly implemented tax will not impact existing mobile phones that were purchased either domestically or internationally and activated before the designated date.
A joint statement released by the Ministry of Communications and Information Technology (MCIT) and the Ministry of Finance clarified that the tax system is non-retroactive. In a related announcement, the Egyptian Customs Authority (ECA) provided reassurance that foreign visitors would be exempt from taxes on personal phones that are activated with non-Egyptian SIM cards upon their arrival in Egypt. This exemption aims to streamline the travel experience for incoming tourists and expatriates. The announcement comes in the wake of some controversy surrounding the ECA’s introduction of an online application known as “Telephony” (MY Phone). This platform allows Egyptians returning from abroad to register their imported mobile devices and fulfill any necessary tax obligations. While Sherif Elkilany, Vice Minister of Finance for Tax Policies, previously indicated that individuals would not incur taxes on a single personal phone, the recent statement clarified that travelers must pay applicable duties on imported personal mobile phones within three months of their arrival.
Elkilany emphasized that customs duties and taxes on imported mobile devices, currently set at 38.5 percent, will remain consistent with previous regulations. He elaborated that the implementation of the Telephony app is aimed at curbing mobile phone smuggling, a significant issue in the country. Notably, he remarked that “95 percent of the mobile phones entering Egypt are smuggled,” underscoring the urgent need for regulatory measures. The Telephony app will facilitate a more user-friendly approach for citizens to register their imported phones, allowing them to access information about applicable fees directly. Moreover, both the communications and finance ministries highlighted the benefits of the app, stating that it would enhance governance through electronic inquiries and simplify the registration and payment processes.
Additionally, the registration process through the Telephony app serves as a safeguard for consumers by protecting them from counterfeit or smuggled devices. It also provides a mechanism for the electronic verification of authentic device codes, ensuring that users are equipped with legitimate products. This initiative reflects the Egyptian government’s commitment to improving customs regulation and combating illegal trade practices, ultimately fostering a more secure and transparent marketplace for mobile devices.
