
Tax proceeds from the sale of mobile phone subscriptions in Egypt could be EGP 750 million, says Amr Badawy, the executive director of the National Telecommunication Regulatory Authority.
Egyptian officials are mooting a new mobile phone subscription tax, in a move to seemingly gauge public opinion on the matter, reports the Egypt Independent.
Badawy added that apart from taxes on new lines, 3% of profits made by mobile companies are planned to be deducted in taxes.
If the new taxes are enforced, the total taxes on communications companies would rise from 15 to 18%, says Egypt Independent.
The newspaper further reports that Badawy “projects that 30 million mobile phone lines will be sold in the first year of the implementation of the tax, particularly since Telecom Egypt, Egypt’s sole telephone landline provider, has obtained a license to provide full mobile phone services”.
Egypt, with a population of 80 million, is one of the largest mobile phone markets in Africa, as the nation has a mobile penetration rate of over 100% according to BuddeComm research.
Share