Egypt Raises Prices of Local Cigarettes by up to 33%

The prices of “popular” local cigarettes produced by the Eastern Tobacco Company (Eastern Company) witnessed a new rise “increase” by percentages ranging between 12.5% and 33%, starting Wednesday, in implementation of the provisions of the value-added tax (VAT) and its amendments and the comprehensive health insurance system law.

Cigarette prices in Egypt have witnessed repeated increases since last year until now, as the prices of 10 types of local cigarettes produced by the country were raised on September 4, 2022.

On the first of  March, the Eastern Tobacco Company (Eastern Company) announced an increase in the prices of 10 types of local cigarettes by rates ranging from 4.3% to 9.5%. At that time, it raised the prices of 9 types by one pound per pack and one type by 50 piasters.

Eastern Company, which recently sold a 30% stake in an Emirati investment company for $625 million, has increased production twice in recent weeks in an attempt to rein in prices, and the company blames some traders for manipulating customers.

The Emirati company reached agreements with banks to provide $150 million to finance imports of raw materials, but cigarette kiosks in Cairo have not yet felt the impact.

Ibrahim Embabi, head of the Tobacco Division at the Food Industries Chamber of the Federation of Industries, said that the rate of increase in cigarette prices ranges from 3 to 7 pounds.

The Eastern Company also decided to raise the price of molasses in the Egyptian markets, per kilo, so that the increase ranges between 10 and 15 pounds.

It is noteworthy the official prices are non-existant, and prices are almost double in markets. It is expected to take as long as six month, with an increase in production, to reach levels close to the official prices.

"The crisis worsened significantly, as every kiosk began selling at a price, and every region now has its own prices, all of which are exaggerated and do not enter the treasury of the state or producers, but some merchants benefit from them to make profits. “The local cigerretes has reached 60 pounds, and the foreign has exceeded 80.”

The list of cigarettes whose price increased in the official market is as follows:

Cleopatra 27 pounds

Mondial red-blue-silver 27 pounds.

Mondial Switch “Menthol - Blueberry 27 pounds.

Matosyan Super 27 pounds.

Viceroy/Pal Mall 42 pounds.

The total taxes applied to the prices of cigarettes and tobacco rise as follows:

Prices of local and imported cigarettes that are less than 31 pounds have the applicable taxes amounting to 4.5 pounds.

Prices of local and imported cigarettes higher than 31 pounds and not more than 45 pounds have an applicable tax of 7 pounds.

Local and imported cigarette prices higher than 45 pounds have an applicable tax of 7.5 pounds.

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