Officials of Gold Division said, over a forum organized by " SEE" News Website, that fees of evaluation imposed by the State on exporting of gold items limit the volume of exports and reduce chances of local products to compete in the foreign markets.
Hany Milad , Head of Gold Division in Cairo Chamber of Commerce, said that fees of evaluation estimated at 1% on exports of gold items present a hurdle among others that reduce chances of the local product to compete in the external markets.
Milad assed over his speech fees of export are imposed though Law of Precious Metals introduced by the Ministry of Supply and Internal Trade.
These fees weren't present any problem in the past due to low prices of gold.
But as prices of gold are rising to historic levels in local marker, those higher prices become a hurdle hampers gold producers to export their products in external markets.
Milad went on say that fee of evaluating one gram is estimated at 1% or 8 pounds.
He pointed out that the producers recover the tax of the additional value after exporting the gold items but compelling the producers to pay in advance presents a hurdle and increase in cost of producing.
Milad made clear that the local Egyptian market is strong and enjoys big volume in addition to people's tendency to wear golden items and some believe gold as saving.
The Head of Gold Division revealed that the local market needs qualified trained craftsmen and gold specialized schools and universities as in the European countries.
He affirmed that abolishing fees of evaluation estimated at 1% is considered one of the most important demands of all producers because it opens new markets and gives chance to compete in in external markets so production and labor expand in the local market.
Milad indicated that gold producers in many countries of the Middle East get much support of their governments to increase resources.
He assured that the Egyptian market witnessed great development in industry as many companies have capabilities to produce good and well-designed items that are able to compete in the external markets.
He warns that hurdles of exporting prevent a big number of companies from competition at least in the Arab markets.
He recommends the State to support the producers and maximize its resources of gold sector.
On his part. Ehab Wassef , Vice-Head of Gold Division in the Chamber of Commerce in Cairo, said that the Egyptian gold items are competitive and the State has to remove any obstacles to open new markets along with abolishing of fees of evaluation because it increases cost of export and deprives companies of offering competitive prices.
Wassef added that his company went through an experienced exporting gold items to 14 countries.
But the company has stopped exporting due to rising cost of export following pound floating in November 2016.
He revealed that activating export to the external markets needs competitiveness.
He stressed that most countries have funds to support exports and exporters get support of their governments.
He explained that Egyptian exporters do ask such a support but ask to abolish fees of evaluation that limit the volume of exports because the local market can't absorb the whole production of gold due to reducing in purchasing power of citizens so external markets should be opened to receive Egyptian product.
Wassef concluded that gold sector is one of the capable sectors that are able to provide hard currency to the State through export, and to create more jobs to participate in diminish unemployment because rising demand for the Egyptian product and sustain Egypt's industrial exports.
Increasing exports of gold rise ranking of the minor firms through developing their tools and products.
https://youtu.be/D_xYM6BiJQQ
Translated by Ahmed Moamar
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