The decision has also prompted criticism from expatriate communities and renewed scrutiny of the government’s mobile phone policy.
The move was announced on Tuesday in a joint statement by the Egyptian Customs Authority (ECA) and the National Telecommunications Regulatory Authority (NTRA). It is part of the mobile phone governance system introduced in January 2025 to regulate the registration and taxation of imported devices and curb smuggling.
Under the system, Egyptian travellers were temporarily allowed to bring one mobile phone into the country duty-free until locally manufactured alternatives became widely available. A 90-day exemption will still apply to mobile phones belonging to Egyptians living abroad and to tourists.
MP Mohamed Farid, representing the Coordination of Youth Parties and Politicians, questioned the government on the outcomes of the Telephony system one year after its launch, warning against using taxation solely to increase revenues.
“Taxes are an economic tool to regulate markets and ensure fair competition, not an easy means to increase state resources at the expense of citizens,” Farid said.
He called on the government to provide detailed data on the policy’s implementation, including the number of phones subject to customs fees, the number of devices suspended from service, total revenues collected, and the cost of collection and administration relative to returns.
“Any economic policy must be built on precise studies and documented data, not personal impressions,” he added.
In a separate question, MP Abdel Moneim Ali Imam, head of the Justice Party, raised concerns about the economic and social impact of ending the exemption, particularly for Egyptians abroad.
“The decision has sent a negative message to Egyptians overseas by equating those who bear the burdens of working abroad with transient tourists,” Imam said, adding that expatriates “should not be treated as a revenue source through ill-considered measures.”
He said the decision had sparked widespread anger among expatriate communities, reflected on social media and forums, especially given their economic importance.
Imam noted that remittances from Egyptians abroad rose by 42.5 percent between January and November 2025 to $37.5 billion, describing expatriates as “one of the most important sources of national income and a real support for the state in times of crisis.”
He cited estimates placing the number of Egyptians abroad at 11.8–14 million, with more than 60 percent residing in Gulf countries and questioned whether sufficient impact studies and inter-ministerial coordination had preceded the decision.
He also asked how many companies have entered the local phone manufacturing market, the scale of their investments, and whether domestic production can meet demand for international brands.
The statement said the decision reflects a shift away from temporary exemptions as local supply expands.
Authorities said 15 international companies have entered Egypt’s mobile phone manufacturing market, with a combined annual production capacity of about 20 million devices, exceeding domestic demand. The framework has created around 10,000 jobs and ensured the availability of the latest international models at competitive prices.
To ease the transition, taxes and fees can be paid through the Telephony application, banks, or electronic wallets. Authorities have allowed a grace period of up to 90 days from first activation before any regulatory action is taken.
Fees will not be applied retroactively to devices exempted before the decision took effect, and registration of personal phones at customs outlets has been replaced with digital channels.
In July, the NTRA reported that around 650,000 phones had been exempted under the one-device rule since the system’s launch on 1 January 2025.
In December 2024, Sherif El-Kilany, Egypt’s deputy minister of finance for tax policy, said that smuggled mobile phones worth about EGP 60 billion had entered the country in one year, with roughly 95 percent coming through illegal channels.
Online criticism intensified following Tuesday’s announcement, with expatriates questioning timelines, exemptions, and enforcement. Supporters of the policy argue that tighter controls are necessary to curb smuggling and support domestic manufacturing.
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