Cinema and caviar... The most prominent commodities subject to a new tax in Egypt

The new tax increases imposed on some recreational goods topped the talk of the Egyptian street during the past days, after the approval of the House of Representatives.

The Egyptian parliament approved a fee of 100 pounds for tickets to leave the country, and also imposed a tax on entering theaters, and on several types of non-essential foods, such as “salmon, shrimp, lobster, Roquefort cheese, and caviar.”

Goods subject to new taxes

The articles of the law approved by the Egyptian Parliament, today, Monday, May 29, 2023, according to Egyptian newspapers, included adding 10% of the invoice value to customs purposes on salmon, shrimp, lobster, Roquefort cheese, caviar, fresh and dried imported fruits, and roasted coffee. 

The tax amendments included imposing taxes on wristwatches, pocket watches, and earphones, imposing a departure fee of 100 pounds for Egyptians leaving the Egyptian lands to travel abroad, and imposing a 50-pound departure fee on foreigners coming for the purpose of tourism to the governorates of the Red Sea, South Sinai, Luxor, Aswan, and Matrouh.

Fees for movie shows and amusement parks

The amendments approved by the Egyptian Parliament also included the imposition of 5% fees on foreign film shows in the cinema in return for entry, 5% opera and ballet performances, 5% Egyptian circus performances, and 10% approval on public parties in social clubs organized by the presidency of the clubs’ boards of directors.

A 10% fee was imposed on ice skating, and 5% on parties, singing, musical and show performances, parties for eating or drinking accompanied by music, dancing or singing, instrumental and vocal music concerts, dancing parties, and entering places such as nightclubs, casinos, hotels and floats.

Tax amendments will not affect essential commodities

The Egyptian Minister of Finance, Dr. Mohamed Maait, said about the tax amendments, that they will not affect the basic and necessary goods for citizens, and the fees for durable goods, soft drinks, cosmetics, and perfumes will not be increased, explaining that there is no increase in the fees for leaving foreign tourists.

The minister added, in a statement he issued on May 27, 2023, that the amendments were limited to some recreational, unnecessary and non-essential goods such as caviar and Simone Vimeh, indicating that the amendments to the theater and cabaret entrance tax law included some activities intended for entertainment such as ice skating, singing parties and disco, increasing it from one pound to twenty pounds.

Certain varieties of coffee are subject to the new fees

Imported coffee or imported coffee is included in the list of commodities that will be subject to a new 10% tax, but the head of the coffee division in the Federation of Egyptian Chambers of Commerce, Hassan Fawzy, told “Ruya News Network” that the tax includes roasted coffee imported in this way, which is a small amount. In imports, it does not exceed 10%.

The head of the coffee division explained that imported coffee is being imported as green beans and is being produced and roasted in Egypt, which is the largest amount of Egyptian consumption and will not be subject to any new fees.

10% customs fees for children’s toys and scooters

The new amendments to the law included the addition of a fee of 10% of the value of the invoice for customs purposes, plus the customs tax, on grinders, food mixers, electric motor shavers, hair dryers, and other electrical thermal devices for hairdressing, hand dryers, electrical thermal devices for making coffee and tea, and toasters for home use.

Also included are duties of 10% on imported headphones, earphones, speakers, speakers, wristwatches, pocket watches and similar watches, bicycles, scooters, pedal cars, similar toys on wheels, doll carriers and other children's toys, and cigar lighters and other refillable or non-refillable lighters.