Egypt's leading cigarettes maker, the Eastern Tobacco Company, on Thursday announced new hikes in some prices of its products.
The company added that the decision comes after applying the value-added tax (VAT) on August 14.
It also pointed out that the new increase will range between 4.5% to 6%, according to the company’s statement to the Egyptian Exchange (EGX).
The price of Mondial smokes will be EGP 17.5 instead of EGP 16.5, the statement added.
Meanwhile, Black Label’s price will be EGP 23 instead of EGP 22.
It is noteworthy that the company achieved net profits amounted to EGP 3.768 billion during the period from July 2018 to June 2019, compared to EGP 4.240 billion in the year-ago period.
Meanwhile the company’s sales rose to EGP 13.89 billion during the 2018-2019 fiscal year compared to EGP 13.41 billion in the same year.
The use of tobacco products in Egypt is widespread. It is estimated that approximately twenty percent of the population uses tobacco products daily. Cigarettes are the most common form of tobacco consumption in Egypt, with an estimated twenty billion cigarettes smoked annually in the country.
After cigarettes, shisha water-pipes are the most common form of tobacco consumption. Many Egyptians are not fully aware of the health risks of using a water-pipe and many believe it to be less harmful than cigarettes.
Recently legislation has passed in Egypt that prohibits smoking in public places and requires special warnings to be placed on tobacco packaging. Smoking is far more common among men than it is among women, however, the number of women smokers is on the rise.
The tobacco industry in Egypt is dominated by the Eastern Tobacco Company; however, since the cultivation of tobacco is prohibited in Egypt the manufacturer must rely entirely on imported tobacco. The number of adults smoking tobacco products in Egypt continues to rise, some suggest by as much as four to five percent annually
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