Egypt to maintain customs exchange rate at EGP 16 in Jan. for essential goods

Egypt will maintain the existing customs exchange rate for essential goods at 16 Egyptian pounds per $1 until the end of January, finance ministry said, while increasing the rate for non-essential and luxury goods to 17.9739 pounds per $1.

In an official statement, the finance ministry said the customs dollar exchange rate for essential goods will remain unchanged.

The raised customs duty, which was approved in December, will apply until the end of January, with an average custom dollar exchange rate at 17.9739 pounds per $1.

In December Egypt sharply raised customs duties on hundreds of goods to encourage local production and curb a hiking trade deficit.

Egypt says increasing the customs dollar exchange rate will raise revenues from the value-added tax (VAT) by 2.5 billion pounds and will lead to an increase of 6 billion pounds in customs revenues, according to statements by the finance ministry last month.

Source: Ahram Online