After the abolition of customs, gold prices record this level in Egypt

After the abolition of customs, gold prices record this level in Egypt
After the abolition of customs, gold prices record this level in Egypt

A gold shop in Cairo (Reuters)

Egypt’s economy

The General Division of Gold expects prices to decline after the government’s decision

Cairo – Khaled Hosni

Published in: May 12, 2023: 01:57 PM GST
Last updated: May 12, 2023: 07:13 PM GST

Gold bullion prices witnessed slight declines in the Egyptian market, in conjunction with the decline in the price of a gram of gold, after the Egyptian government’s decision to exempt gold imports from customs, with the exception of value-added tax.

A gram of 24 karat gold recorded a level of 2902 pounds. The price of 21 carat, which is the most traded in the Egyptian market, also fell to the level of 2540 pounds. The price of an 18-carat gram stabilized at 2117 pounds. The price of the gold pound fell to the level of 20160 pounds.

As for ingots, the price of a gold ingot weighing one gram stabilized at 2891 pounds, and the price of a gold ingot weighing 2.5 grams scored about 7227 pounds, and the price of a gold ingot weighing 5 grams reached about 14455 pounds.

The price of a 10-gram gold bar was about 28,910 pounds. The price of the gold bar, weighing 20 grams, stabilized at 57,820 pounds. The price of an ounce of gold, weighing 31.1 grams, was about 89,810 pounds.

The Egyptian Cabinet had decided to exempt gold imports in semi-manufactured forms, as well as those intended for monetary circulation, jewelry, and jewelry and their parts of precious metals, even if they are clad or clad with a crust of precious metals, which are accompanied by those coming from abroad, from customs tax and other fees except for the tax. On the added value by 14%, for a period of 6 months.

The draft decision also stipulates that this exemption does not apply to natural or cultured pearls, precious or semi-precious stones, mounted or inlaid on jewelry and their parts.

The decision came within the framework of controlling the stability of gold prices, and limiting customs smuggling attempts for half-occupied and occupied gold items through various customs outlets.

In a statement, the General Division for Gold and Jewelry of the General Federation of Chambers of Commerce welcomed the decision, and praised the government’s quick response to the proposals submitted by the Division to the Minister of Supply and Internal Trade in this regard.

She explained that the added tax that is calculated on gold is applied to the value of workmanship and not the value of gold based on the tax accounting protocol signed between the Division and the Tax Authority and is estimated at 14% of the value of workmanship, and it is also supposed to be collected from expatriates at customs outlets without other fees that were previously scheduled. .

She pointed out that the decision will have a direct and rapid impact on the decline in gold prices in the local markets, as it will provide the necessary raw materials to comply with the volume of demand, which has doubled compared to the same period last year, according to the estimates of the World Gold Council, which estimated the size of the Egyptian market’s demand for gold during the first quarter of this year. About 7 tons, compared to about 3.2 tons during the same period last year.

The division confirmed that the availability of crude in the local markets will achieve the desired balance between local and international prices. The decision will also have a direct impact on the return of remittances from Egyptians abroad in the form of artifacts or gold ore.

And it suggested that there would be declines in gold prices during the coming days, with expectations of an increase in the supply in the market, which would lead to a decline in prices, especially since allowing the entry of gold would push prices to decline.

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