Unexpected tax warning messages and service suspensions have sown chaos in Egypt’s mobile phone market, in what a source told Al Manassa was an error.
Thousands of Egyptians were startled this week after receiving SMS messages demanding retroactive customs payments on their mobile phones, with some devices abruptly disconnected from service.
The notifications coincided with a broader government move to tighten enforcement of tariffs on imported electronics.
In January, the government imposed a 38.5% customs duty on imported mobile devices activated in 2025 and beyond. The policy includes a one-device exemption for personal use every three years.
However, Mohamed Talaat, head of the telecommunications division at the Cairo Chamber of Commerce, told Al Manassa that messages demanding tax payments were sent even to users who activated their phones in late 2024, before the rule came into effect.
“That caused a major crisis in the market,” Talaat explained. “We’re seeing the same mess that happened when the Telephony app was first introduced.”
The Telephony app, developed by Egypt's National Telecom Regulatory Authority (NTRA), is used to register and manage mobile devices, particularly imported ones, to ensure compliance with new customs regulations.
Talaat said the division had filed several complaints to the NTRA, but had received no response. A meeting is expected soon to discuss the crisis.
The impact of these unexpected charges has been particularly severe on traders, according to Hamdy El-Nabarawy, a member of the Cairo Chamber of Commerce’s mobile division.
“Traders bought used phones for resale, only to be hit with backdated taxes they should never owe,” he said. “They’re not greedy—they just didn’t expect to be punished for past deals.”
El-Nabarawy added that the retroactive enforcement contradicts prior assurances from NTRA that only phones activated after Jan. 1, 2025, would be taxed. He cited examples of outdated pricing logic, including taxes of 5,000 Egyptian pounds on phones worth 3,000 pounds, and 600 pounds in duties levied on devices valued at just EGP 200.
Earlier this week, the NTRA said it had suspended 60,000 devices suspected of not qualifying for the customs exemption. Following a review, service was restored to 47,000 devices. Officials said only 13,000 were found to involve fraudulent documentation.
But Walid Ramadan, deputy head of the mobile division, called the NTRA’s tone “provocative.” “What does ‘fraud’ mean here?” he asked. “Is it respectful to cut service to 60,000 phones without first checking the facts?”
Mohamed Hedayah, another chamber member, said the NTRA's statement was detached from the market reality. “Some of these suspended phones were activated back in 2023 or 2024,” he said. “We need telecom providers to confirm when activation really took place.”
A senior official at the Ministry of Communications, speaking on condition of anonymity, acknowledged mistakes in the tax rollout. “This is the first time we’re implementing this system. Naturally, there will be errors. That’s why we’re allowing appeals,” the official said.
They added that some messages were sent in error, and citizens who believe they’ve been misidentified can disregard the warning. Devices found to meet the exemption criteria will be reconnected automatically, either after a successful appeal or following an internal NTRA review.
