This comes after the implementation of Egyptian Prime Minister Mostafa Madbouly’s decision to waive customs duty and other non-value added charges, in a way that reflects the willingness of residents abroad to benefit from these facilities linked to the gold brought with them.
price stability
Hani Milad, head of the general division of gold and jewelery at the General Federation of Chambers of Commerce, believes that the prime minister’s decision, issued about a month ago, has helped stabilize prices in a range between 2315 and 2350 pounds per gram of 21 carats, since it provides more ore required in the market, without imposing a charge on the import of the State or burdening the banking system with the provision of resources in dollars for import.
Milad confirmed in his interview with “Sky News Arabia Economy” that the decision was taken in light of the memorandum that the division submitted to the Minister of Supply and Domestic Trade to present to the Prime Minister, besides that the implementation of the mechanisms at the customs points took place within the framework of the tax settlement protocol signed between the Division and the tax administration for the calculation of the value of the value added tax on the import of gold in all its forms.
The Head of the General Gold and Jewelery Division at the General Federation of Chambers of Commerce highlighted the following points:
There are strong motives, encouragements and motivations for those who come from abroad to attract large amounts of gold artifacts. The presence of gold from abroad will contribute to lower supply prices in local markets to equal the world price in the event that imports satisfy all domestic demand, or exceed the volume total domestic demand. Import quantities are expected to increase during the summer holiday season, but this will come up against domestic demand in Egypt, which increases during the summer period. It is difficult to determine whether the quantities that will enter local markets will be sufficient to meet demand or to predict the quantities that will be received. There is solidarity and continuous communication between the Division and all government agencies of policy makers to control any unwarranted rise in markets. We seek to achieve continued stability in gold prices for the benefit of all trading elements, including producer, trader and consumer.
A positive step, long overdue
Dr. Saber Shaker, professor of economics at Helwan University, confirms that the Prime Minister’s decision had a direct and rapid impact on the entry of more than 194 kilos of gold, and was quickly reflected in falling gold prices in local markets.
Shaker continued in his interview with the “Sky News Arabia” website that the decision to exempt customs from gold imports has a significant impact in terms of supplying the ore needed to meet the volume of demand, which doubled compared to the same period. last year, according to World Gold Council estimates.
And the economics professor added: “There is a direct impact on the return of remittances from Egyptians abroad in the form of artefacts or gold ore to the Egyptian state, and we ‘expects that the quantities to be brought to Egypt will also increase in the coming period.’
He added, “The decision to exempt customs from gold imports is a positive step that has been long overdue,” stressing that the abundance of gold will achieve the desired balance between local and international prices. .
Market control
Al-Shahat Ghaturi, head of the Customs Authority, said he agreed with all previous opinions on the importance of the decision and its benefits, and he had previously noted, according to the official page of the Council of Ministers on Facebook, the following points:
- Passengers coming from overseas must disclose the gold jewelery they are with, to avoid the customs evasion service, and to benefit from the Prime Minister’s decision to exempt from customs tax, the cost of stamping and evaluation, which extends over six months, beginning last May 11.
- The decision to exempt from customs duty, stamping and expert fees applied to imports of gold in semi-worked form, gold prepared for monetary circulation, ornaments and jewelery and parts thereof of precious metals, whether or not coated or coated with a crust of precious metals.
- These exemptions do not apply to fine or cultured pearls, precious or semi-precious stones, mounted or encrusted on jewelery and their parts, which are brought with those coming from abroad.
refuge
Shadi Al-Saadani, a gold markets expert, said in his Sky News Arabia interview that: “The abolition of gold customs has resulted in increased government revenue from the tax on added value on gold jewelry sold, as gold is considered one of the most important commodities traded in the Egyptian market.
He went on to say that gold is considered a safe haven for investors in times of economic and political volatility, and in some cases it can be a safe haven for people against currency fluctuations and inflation.
Al-Saadani believes that supplying more gold to the Egyptian market requires multifaceted measures, including encouraging local production by providing an encouraging environment for producers, providing them with more technical and financial support, and removing barriers and restrictions faced by the local gold mining and production process, such as environmental, regulatory and customs restrictions.
Al-Saadani added that the state should combat smuggling by increasing border controls, toughening penalties for smugglers and carrying out comprehensive economic reforms to improve economic conditions and increase investment and business activity.
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