Tuesday, January 22, 2013

Update on Mobile Phone Charges

With news yesterday circulating about the price increases in mobile phone cards and services in Egypt, the Egyptian government in their usual gusto was quick to deny reports linking the price spikes to tax hikes.

Mamdouh Omar, the head of the Egyptian Tax Authority, said that the price hikes were all a result of "internal decisions" made by the three telecommunication companies (Vodafone, Mobinil and Etisalat) and that it had no relation to tax hikes from within the government. He stressed that charge cards have taxes included in their prices, and it's up to the mobile operators to set their own taxes incurred on the card.

Omar noted that the proposed tax hikes to the telecommunications sector have been placed "on hold," and that nothing has changed in their status.

So obviously, it's just a huge coincidence that all three operators upped their prices by 15% at the same time. Is this another word game being played by the Egyptian Government to push an additional 15% sales tax down the consumer's throats? It wouldn't surprise me in the least.


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