A new spike in the prices of computer products is expected soon due to a rise in their import prices.
The surge in prices is a result of the government classifying computers as luxury products, thus making computer devices subject to luxury goods and services tax.
The list of luxury—or provocative—products in Egypt includes items such as soap, shampoos, deodorants, certain types of fruits, as well as tea and coffee-making machines!
There’s a list of home appliances that were also categorized as unnecessary, such as water heaters, refrigerators and other kitchen appliances. We believe the criteria for classifying an item as ‘necessary’ or not should be revisited, based on the Egyptian market.
Computers have become equally indispensable in private and public sectors. They’re even more important than an actual premises or headquarters in the case of startups. It’s counterproductive to impose additional taxes on the already high prices, while local alternatives are scarce or nonexistent.
While certain fruits can be classified as non-necessary products, we strongly believe it’s imperative to use soap and personal hygiene products on daily basis. Many home items, like refrigerators and water heaters, that the government views as luxurious, are in fact vital for any 21st century household.
Here are some of the items that are considered as luxury goods in Egypt:
1- Computer devices
3- Alcoholic drinks
4- Sports shoes
9- Soaps, shampoos, and hygiene products
10- Cat and dog food
11- Tobacco products
12- Exotic pets, such as goldfish and parrots
Source: Akhbar Alyoum