Egypt raises gold jewellery processing fees by 10%

Under the new decision, the 100-gram 24-karat gold bars will be considered jewellery and therefore be subject to the processing fees and a 14 percent value-added tax (VAT).

Meanwhile, gold bars weighing more than 100 grams will be considered bars and exempted from VAT.

The new increase in processing fees will not burden consumers as it would not exceed EGP 2 for all gold karats, said Hani Milar, head of the Gold Division.

Gold prices suffered significant losses in June after the government applied a new initiative in May to exempt gold brought home by Egyptian travellers from customs duties.

Egyptian travellers returning from abroad have brought in more than 306 kilograms of gold from 11 May to 22 June.

 On Sunday, gold recovered some of these losses, rising by an average of EGP 65.