A “new decision” confuses the gold market in Egypt

The head of the Gold and Precious Metals Manufacturing Division at the Federation of Egyptian Industries, Ihab Wassef, said, in a statement obtained by Sky News Arabia, that the increase in workmanship prices with the start of the new fiscal year 2022-2023 starting from this month was not issued by factory owners, but came according to Amendments made by the Egyptian Tax Authority to amend the mechanism for collecting value-added tax on precious metals.

Ihab Wassef stressed that the new increase goes entirely to the state treasury and not to factory owners and traders.

According to the statement, the amendments made by the taxes stipulate the collection of value-added tax, which will be applied from the beginning of the new fiscal year, that the value of the average operating values ​​known as workmanship, and not any other stage of the cost, is calculated by 14 percent annually, provided that its proceeds increase for the state Unchanged by increasing the value of workmanship by 10 percent annually.

The head of the Gold and Precious Metals Manufacturing Division explained that after the new estimated increase, the average value of workmanship on a gram of 21 karat gold will rise to 44 pounds, and the value of the value-added tax due on it will be 6.16 pounds, and the average workmanship of 24 and 18 karat gold to 66 pounds, provided that the value of the tax will be The added value is 9.24 pounds.

The average value of workmanship on a 14-gauge gram will rise to 55 pounds, and a tax is due on it 7.7 pounds, and the workmanship price on a 12-gauge gram will reach 49.5 pounds, and the value-added tax will be 6.93 pounds, while a 9-gauge gram will raise the price of its workmanship to 33 pounds, provided that you get from it A value added tax of 5.62 pounds.

The value of the new workmanship will increase on the prices of silverware between EGP 8.8 to EGP 11, and the average value of the value-added tax applied to it will be EGP 1.39, depending on the type of caliber. fairy.

Ehab Wassef said in statements to “Sky News Arabia” that the division is currently studying many proposals to absorb the increase in value-added tax by raising the value of workmanship by 10 percent annually, so as not to negatively affect the decline in factory and merchant sales.

In a related context, gold prices for 21 karat fell from the level of 1250 to 980 pounds per gram, before gold compensated part of these losses at the beginning of Saturday’s trading, and gold recorded 990 pounds per gram of 21 karat, which is the main caliber in the country.

The losses of gold owners reached more than 260 pounds per gram, after gold prices fell, Friday, to levels of 980 pounds per gram, compared to 1250 pounds per gram in the first week of May 2022.

What happened in the Egyptian market was only a reflection of what gold prices witnessed in global markets, over the course of the last May and June, due to the rise in US interest rates, as the price of an ounce in global stock exchanges fell by about $90 in two months, after it fell from the level of 1900 dollars. Early May 2022 to 1810 dollars at the end of Friday settlements.