Egypt's cabinet approves draft decree exempting travellers from gold tax

The Egyptian government approved a draft decree during its weekly meeting on Wednesday exempting travellers who bring gold from customs duties and other fees — except value-added tax (VAT) — for a period of six months, a media report said on Thursday.

According to the cabinet, this exemption applies to semi-manufactured gold, gold prepared for currency-trade, and jewellery parts made or coated with a layer of precious metals.

However, natural or cultivated pearls, gemstones, and composite or inlaid semi-precious stones on jewellery are not included in this exemption.

The government has not specified the exact amount of gold that will be exempted from taxes for travellers entering the country.

On Sunday, however, Minister of Finance Mohamed Maait said that the Egyptian government will decide on Wednesday whether to allow those coming from abroad to bring up to 150 grams of gold duty-free, according to Ahram Online.

The move aims to achieve stability in gold prices within the markets and reduce smuggling of half-manufactured and manufactured gold.

The draft decree was suggested by the Gold Division at the Cairo Chamber of Commerce to ease pressure on local gold supply and reduce prices.

The gold market in Egypt has been disrupted due to a set of factors, including shrinkage in supply - due to shortage in US dollars - and ballooned demand.

WAM