The Egyptian Tax Authority has firmly denied recent rumors circulating on social media and some news platforms about a planned increase in the value-added tax (VAT) on cigarettes starting November 2025.
In an official statement, the authority emphasized that no amendments have been made to the VAT rate applied to cigarettes and that no changes will take effect next month. It clarified that recent interpretations suggesting a 12% tax hike are completely incorrect and stem from a misunderstanding of the current pricing framework.
According to the statement, the so-called “opening of price brackets” does not imply a tax increase. Instead, it allows tobacco companies to set the selling prices of their products according to market competition, company policies, and existing pricing regulations.
This mechanism is in line with Law No. 177 of 2023, as amended by Law No. 157 of 2025, which permits an annual adjustment of up to 12% in the price bracket, not the tax rate itself, over a three-year period.
The Tax Authority called on media outlets and social media users to verify information before publishing or sharing it, stressing that it is the only official body authorized to announce any tax or legislative amendments. It also reminded the public that any changes to tax rates require formal legislative procedures, including Cabinet approval and subsequent passage by Parliament.
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