Will Egypt's 'luxury tax' hurt everyday citizens?
Egyptian President Abdel Fattah al-Sisi issued a decree raising customs tariffs on so-called luxury products, a new development that some say threatens the country with a potential wave of inflation.
CAIRO — On Jan. 31, Egyptian President Abdel Fattah al-Sisi issued a decree raising tariffs on hundreds of imports. The increases, which went into effect the very next day, stirred quite a bit of controversy.
Sisi said the increases affect mainly luxury items, and price controls will help prevent businesses from taking advantage of the increased duties to raise consumer prices.
Although the tariffs are being levied on some commodities that are not widely consumed by Egyptians — such as pet food, plums and cashews — they also affect other important products such as refrigerators and other household appliances, LCD televisions and satellite receivers. Many of the increases run as high as 40%.
“The 40% rise on customs tariffs is expected to raise the final prices for consumers by 25%," said Ashraf Hilal, head of the household appliances division at the Federation of Egyptian Chambers of Commerce (FECC).
