Engineer Walid Ramadan, Vice President of the Communications and Mobile Division at the Federation of Chambers of Commerce, confirmed that imposing customs duties and taxes on mobile phones is officially justified under the pretext of protecting the local industry, according to what was announced by a Ministry of Finance official.
Ramadan added, during television statements, that the reality on the ground reveals a real crisis in the pricing of locally manufactured phones, as they are sold at higher prices than their counterparts in foreign markets.
The Deputy Head of the Communications Division explained that the prices of phones manufactured and sold inside Egypt exceed the prices of the same devices in other countries, which represents a major challenge to the success of the local industry and its ability to compete.
He pointed out that this price gap weakens consumer confidence in the local product and pushes them to search for cheaper foreign alternatives.
Ramadan revealed a clear example of the crisis, stressing that there is a mobile phone manufactured in Egypt and sold in the local market at a price of up to 62 thousand pounds, while the same device is sold in Saudi Arabia for 41 thousand pounds, and in the Emirates for 42 thousand pounds.
He pointed out that these prices in Saudi Arabia come after the application of a 15% sales tax, which reflects the large difference in pricing.
The Deputy Head of the Communications Division explained that the aforementioned phone is not manufactured in Saudi Arabia, but is imported from other countries, and yet it is sold there at a lower price than the Egyptian market, stressing that this paradox raises fundamental questions about the pricing system within the local market.
Walid Ramadan confirmed that he called for the formation of a joint committee that includes the Chambers of Commerce, the Competition Protection and Prevention of Monopolistic Practices Agency, and the Consumer Protection Agency.
This is to follow up and monitor the prices of locally manufactured mobile phones, and to ensure the existence of fair pricing mechanisms that protect the consumer and support the industry without harming the market.
The Deputy Head of the Communications Division stressed that supporting the local industry should not be done at the expense of the citizen, stressing that any protectionist policies must be accompanied by real price control, to ensure achieving a balance between encouraging industrialization and protecting the consumer.
