Hani Milad: The value-added tax determined in the tax accounting protocol with the tax authority is based on the value of workmanship, not the value of gold.
cairo 10/5/2023
The General Division for Gold and Jewelry of the General Federation of Chambers of Commerce welcomed the decision of Dr. Mostafa Madbouly, Prime Minister, regarding exempting gold imports in semi-worked forms, As well as those prepared for circulation in cash, jewelry, jewelry and their parts of precious metals, whether or not it is clad or plated with precious metals, which are accompanied by those arriving from abroad, of the customs tax and other fees, with the exception of the value-added tax, And that for a period of six months. The draft resolution also stipulates that this exemption does not apply to natural pearls. or cultivated, or gems, or compound semi-precious stones, Or inlaid on ornaments, jewelry and their parts.
Hani Milad Geyed praised the Prime Minister’s quick response to the proposals submitted by the Division to the Minister of Supply and Internal Trade in this regard.
And Jaid explained that the value-added tax that is calculated on gold is applied to the value of workmanship and not the value of gold based on the tax accounting protocol signed between the Division and the Tax Authority and is estimated at 14% of the value of workmanship, and it is also supposed to be collected from expatriates at customs outlets without other fees that were Previously scheduled.
Geyed added that the decision will have a direct and rapid impact on the decline in gold prices in the local markets and will also provide the necessary raw materials to comply with the volume of demand, which has doubled compared to the same period last year, according to the estimates of the World Gold Council, which estimated the volume of the Egyptian market’s demand for gold during the first quarter of the year. The current amount is about 7 tons, compared to 3.2 tons during the same period last year.
Geyed affirmed that the availability of crude in the local markets will achieve the desired balance between local and international prices. It will also be a direct impact on the return of Egyptians’ remittances abroad in the form of artifacts or gold ore.
A good thank you to Dr. Ali Al-Moselhi, Minister of Supply and Internal Trade, for adopting the Division’s point of view in this regard to find alternatives to importing gold without burdening the state with any dollar burdens for import.
