CAIRO: Egypt raised sales taxes on both local and imported cigarettes by 50 percent, according to a Sunday presidential decree.
In a statement to the Egyptian Exchange (EGX), Egypt’s cigarette maker Eastern Company said it will amend the sale prices for local products following the Sunday tax increase by the government. Eastern company said the revenue will be added to the State treasury.
In his first comments after the tax hike, Chairman of Eastern Company Nabil Abdel Aziz told Youm7 that the tax hike imposed on local and imported cigarettes will generate approximately 32 billion EGP ($4.20 billion in revenues to the state treasury at the end of the current fiscal year at June end.
Under the decision, an increase of 0.5 EGP or more on brands officially sold at or below 10 EGP per pack as their fixed sales tax hiked to 2.25 EGP, compared to 1.75 EGP.
Meanwhile, local and foreign brands with an official retail price between 10-16 EGP will see a price hike of at least 1 EGP per pack. Further, prices of the expensive brands sold at more than 16 EGP will jump by at least 1.5 EGP per pack.
Last July, President Abdel Fatah al-Sisi raised taxes on local and imported cigarettes and alcoholic beverages by up to 200 percent.