Many individuals are wondering about the impact of the decision to exempt gold imports from customs duties and other fees, with the exception of value-added tax, which is scheduled to last for only 6 months, on the fate of gold prices during the coming period, and the extent of its effectiveness in facing the continuous rise in prices at record levels. .
Does the decision to exempt gold imports from customs duties contribute to falling prices?
Amr al-Maghrabi, a member of the Board of Directors of the Gold Division of the General Federation of Chambers of Commerce, said that the customs exemption decision on gold imports, which was activated last Thursday, contributes to price stability, due to the increase in the quantities offered in the local markets when expatriates from abroad bring in quantities of gold.
In a statement to Cairo 24, a member of the Board of Directors stated that prices witnessed a noticeable decline during the past two days, as the first reaction to the Egyptian Cabinet’s approval of the proposal to exempt gold imports from customs duties, in addition to the decline in the purchasing power of consumers.
For his part, Amir Rizk, a goldsmiths expert, said that exempting gold imports from customs tax will lead to the availability of the raw material, especially after its shortage in the local markets during the previous period, due to the increased demand for purchase, amidst a great demand for bullion and pounds.--
And the artifact expert added, in a special statement to Cairo 24, that gold prices are expected to drop by 50 pounds during the next two days, but it is difficult to predict gold prices during the customs exemption period, which extends to only 6 months, due to the presence of many factors that control gold prices. Gold prices, such as the price of the dollar, the volume of supply and demand, in addition to the global stock exchange for gold.
And earlier, the Egyptian Cabinet, headed by Dr. Mostafa Madbouly, announced during its meeting last Wednesday, the approval of the Prime Minister’s draft decision to exempt gold imports in semi-worked forms, as well as those intended for cash circulation, jewelry, and their parts of precious metals, whether or not they are clad or coated. Clad with a shell of precious metals, which are brought with expatriates from abroad, from the customs tax and other fees except for the value-added tax, provided that this decision is valid for a period of 6 months only.
And the issued Cabinet decision included that this exemption does not apply to natural or cultivated pearls, precious or semi-precious stones, mounted or inlaid on ornaments and jewelry and their parts.