Tax hike on “lux­ury” im­ports

Business monthly (Egypt) - - IN BRIEF -

For the sec­ond time in a year, Egypt raised im­ports tar­iffs on lux­ury goods, in­clud­ing fruits, cos­met­ics, sta­tionery and elec­tron­ics. Over­all, tar­iffs on 320 goods in­creased by 40 to 60 per­cent last month, fol­low­ing 30- to 40-per­cent in­creases in Jan­uary 2016. The min­is­ters of trade and fi­nance said the hikes aim to sup­port lo­cal in­dus­try and re­duce im­ports, yet will not af­fect goods im­ported from coun­tries hav­ing a free-trade agree­ment with Egypt, in­clud­ing the EU, COMESA, the Arab re­gion and Turkey, re­ported Ahram On­line. In a joint state­ment, the min­istries said an in­crease in im­ports in re­cent years had cre­ated an enor­mous bur­den on the econ­omy, con­tribut­ing to a $49-bil­lion deficit in the pub­lic bud­get, while the lat­est tar­iff hike is ex­pected to cre­ate a LE 6-bil­lion bump in an­nual tax rev­enues.

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