The increase in tariffs are related to products ranging from candy, make-up accessories and household appliances to pens, imported clothes, electrical devices such as tvs , refrigerators and ovens, vegetables and fruits already produced in Egypt have also been added to the list. Some fear this decision could further burden the already impoverished population. The government moved quickly to ease those fears.
“The goal is that we balance or control our balance of trade to ensure that all products imported are up to the required quality so that the hard currency would only go to high quality products. ..we are not banning imports but we are regulating the import and export process” Tarek Qabil, Egyptian Minister of Trade and Industry
Some experts believe the customs duty increase, is essential at this moment
“The objective is to facilitate the import of goods that are needed for the industry in general and necesary goods. But not for extra commodities that are not really a must”Elhamy Zayyat, CEO, EMECO Group
Egypt is faced with a floundering tourism industry, a slow return of foreign investments and low industrial production levels.
These factors amongst others resulted in a lack of revenues and not enough dollars to purchase the country’s basic needs. The government has been receiving loans and grants to cover the financial gap. And experts are happy about this week’s measures too.
“I personally endorse it because customers are on unnecessary goods such as pistachio, to balance our trade equilibrium. Not the necessary goods.
VO So we can use other products for the time being. And it is worth noting that the government is not stopping imports it is increasing the customs duty whenever possible” Elhamy Zayyat, CEO, EMECO Group
The latest tariff increase is part of austerity measures that include completely scrapping subsidies on energy and fuel over the the next 4 years.
The tariff rise has angered some with fears of it’s inflationary effects. However analysts perceive these reforms as a tough medicine that is essential , to cure Egypt’s ailing economy .
