Egypt imposes large-scale import tariff hike

Tariffs on some imported goods are set to rise up to 60 percent in Egypt following a decree issued by President Abdel Fattah al-Sisi, the country’s finance ministry said on Sunday. 

The measure is intended, said the ministry, to “reduce imports” which are believed to have contributed to Egypt’s soaring trade deficit, which has reached more than $49 billion. 

“The decision aims to provide the necessary climate to attract investments, and give a strong boost to increasing local productivity," read a statement, released on Sunday.

"It also aims to reduce the import rates that the Egyptian market suffered from in recent years, and led to an increase in the trade deficit to reach more than $49 billion.” 

The new tariffs are set to be applied to goods including electronic devices, fridges, cosmetics, shoes, and chocolate.

Political and economic turmoil in Egypt has contributed to a weak Egyptian pound and skyrocketing prices, including on imported goods, with Cairo having last month secured a massive $12 billion International Monetary Fund loan.

In one development since 2011 the drying up of the Egyptian tourism industry and foreign investment has lead to endemic shortages of foreign currencies stifling business activities and leading to an increasing lack of faith in the Egyptian economy.

The new tariff system was in the process of being implemented. It is estimated it will lead to an annual increase in tariff revenues of $337 million.

The Egyptian Daily Al-Ahram has reported that a second phase of economic reforms is set to be announced next week, which will include the introduction of a progressive taxation system, in addition to further cuts in subsidies.