Over a period lasting from 11 May to 11 June, Egyptian travelers carried more than 194 kg of gold from abroad, free from customs charges and other expenses, according to a statement issued by the Egyptian Customs Authority (ECA).
Travelers must list all of their possessions in order to receive fee exemptions and avoid customs evasion penalties, according to ECA Chief Shahat Ghatoury.
Prime Minister Mostafa Madbouly issued a decree on 11 May exempting travelers carrying gold from customs duties and other fees, except value-added taxes (VAT), for six months. The decision is meant to address the shortage in gold supply in the local market, which resulted in a surge in gold prices.
The decree didn’t specify the exact amount of gold that would be exempted from taxes for travelers entering the country.
Ghatoury said last month in a phone call with the “El-Hikaya” TV show that the VAT applies to the gold processing fees, not the total value of gold.
He added that the amount of gold allowed was not specified, but that it should be within “reasonable limits”.
Since the release of the decree, gold prices have seen a considerable decline. A 24-carat gram of gold dropped from EGP 2,915 on 11 May to EGP 2,651.5 on 11 June.
Gold prices stood at $1,961.2 per ounce (28.34 grams) on Sunday, according to Bloomberg.
In the Egyptian market, the price of a pound of gold amounted to EGP 18,560 on Sunday, while 21-carat gold was priced at EGP 2,320 per gram.
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