New Increase in Cigarette Prices to Achieve Tax Goals

The Egyptian Minister of Finance Mohamed Maait issued a decision on the new prices of cigarettes and tobacco after the parliament agreed to increase taxes on them.

Ibrahim Imbaby, head of the tobacco pision at the Federation of Egyptian Industries said earlier that the new increase scheduled for Monday on cigarettes and shisha tobacco prices will contribute to achieving Egypt's targeted tax revenue on smoke and tobacco that amounts to EGP 65.8 billion during the current fiscal year 2019/20.

Imbaby stressed that the volume of Egyptian cigarette consumption has now reached 85 billion cigarettes annually, pointing out that the current increase in prices will not affect the volume of companies' production.

The prices published in the Official Gazette came today, as follows:

Dunhill: EGP 43

Merit: EGP 43

Davidoff: EGP 40

Marlboro: EGP 40

Kent: EGP 38

Camel: EGP 35.5

L&M: EGP 31

Rothmans: EGP 31

Winston: EGP 30

Next: EGP 27

Pall Mall: EGP 26

Viceroy: EGP 26

LD: EGP 26

West: EGP 26

Cleopatra Box: EGP 18

The House of Representatives agreed earlier yesterday to amend some provisions of the VAT Law promulgated by Law No. 67 of 2016 and its amendments.

The amendments included an increase in the fixed schedule tax on cigarette products in the local market by 50 piastres for the first tranche, 100 piastres for the second tranche, and(50 piastres for the third segment with the price ceiling raised for all slides to cope with  price hikes as an outcome of the increase in the proposed tax.