The measure does not affect existing mobile phones purchased domestically or abroad and activated before this date, as "the tax system is not retroactive," read a joint statement by the Ministry of Communications and Information Technology (MCIT) and the Ministry of Finance.
In a clarification note on Wednesday, the Egyptian Customs Authority (ECA) stated that foreigners arriving in the country will be exempt from paying any taxes on personal phones activated with non-Egyptian SIM cards.
The joint statement follows controversy surrounding the Egyptian Customs Authority (ECA) announcement of launching an online application, Telephony (MY Phone), for Egyptians arriving from abroad to register their imported phones and pay applicable taxes and customs duties.
Despite earlier remarks by Sherif Elkilany, Vice Minister of Finance for Tax Policies, stating that individuals would not pay taxes on a single personal phone, Wednesday's statement said that travellers arriving from abroad have to pay duties on imported personal mobile telephones within a three-month period of arrival date.
However, the statement noted customs duties and taxes on imported mobile phones "are not new and remain unchanged."
Taxes and duties on imported mobile phones have been levied at 38.5 percent, Elkilany explained on Wednesday.
He stressed that the launch of the Telephony app intends to combat what he described as "mobile phone smuggling."
ElKilany said: "95 percent of the mobile phones entering Egypt are smuggled.”
Citizens can now directly register their imported mobile phones and learn about required fees through the Telephony app.
The communications and finance ministries said registering on the new app ensures better governance by enabling electronic inquiries, registration, and payment of applicable fees.
This registration also protects citizens from smuggled or counterfeit phones and provides electronic verification of authentic device codes, added the ministries.
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