Egypt examining new telecoms tax options

9 Jan 2013

Proposals for a tax on new mobile voice connections could net the Egyptian government around EGP750 million (USD115 million) per year, the Egypt Independent notes, citing executive director of the National Telecommunication Regulatory Authority (NTRA), Amr Badawy. With the taxes currently being discussed with a view to generating public support for such a move, Mr Badawy noted that he expects around 30 million new mobile accesses will be connected in the first year following the implementation of the tax, with this figure in part a result of fixed line incumbent Telecom Egypt looking set to gain its own mobile voice concession.

Alongside the new mobile tax, the report also notes that there are plans to increase the percentage of profits that mobile operators are required to pay to the state; it is understood that under the proposals cellcos will be required to pay an extra 3% of their profits to the government, increasing the total from 15% to 18%.