The decision of the Minister of Supply and Internal Trade to apply appraisal fees on exports of gold ore, creates an annual revenue estimated at about EGP 1. 5 billion.
These revenues participate in maximization of gains of the Public treasury of the State.
Hany Baqy, Chair man of "Marger" Gold & Jewelry Manufacturing Company, said that the ministerial decision reduces the price of gold gram by the same rate of the present fees which is estimated at EGP 8.
This reflects positively on the local market and leads to an increase in sales of gold.
He added that the decrease in local prices of gold creates competitive chances to Egypt in the region, attracts Arab investors to the local market, attracts foreign capital and increases factories.
Baqy went on to say the decision of the Minister of Supply and Internal Trade leads gradually to increase the volume of production as a result of a suitable inventory of gold ore, slashing the rate of unemployment and reducing the percentage of workers walking out the gold sector.
He explained that the volume of production of gold items reduced within ten years from 300 tons to 50 tons only.
Production of gold items in Egypt depended then on 200 tons of imported gold and 100 tons of used gold traded in the local market.
Baqy affirmed that the local market lost about 85% of production of gold items so the production depended on broken or used gold to manufacture about 50% , meanwhile, 50% is export in the form of gold ore.
He indicated that the absence of fees of appraisal supported the opportunities of exporters to increase exports and maximize their gains due to controlling the price in local gold compared to the world price at a range of 5-10 pounds per gram.
So gold exporters harvest personal gains without any benefit to the State or the gold sector from exports.
Baqy noticed that the State applies fees of hallmarking at EGP 6 and 14% as the value added tax in addition to 1% of manufactured gram in the case of exporting abroad.
He stressed that gold exporters aspire at exempting gold items from any fees in order to develop and increase exports abroad and widen the local market.
He warns that gold craft couldn't develop as the volume of production reduced to 50 tons annually.
Baqy revealed that the volume of demand in the local market reduced during the period of the Corona pandemic.
He said that gold is a complementary commodity and the power of purchasing deteriorated which is the main engine of demand and supply.
He indicated the necessity of creating stimulating factors such as intervening of banks to fund customers, and installments of the value of gold in short periods, such as the use of credit cards, in addition to companies offering lightweight products to suit the different financial solvency of consumers.
Translated by Ahmed Moamar
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