Parliament approves raising cigarettes' taxes

CAIRO – 21 November 2017: The Parliament approved Tuesday a draft law submitted by the government to amend the Value-Added Tax (VAT) Law so as to increase cigarettes and hookah prices.

Under the approved amendments, the tranches of cigarettes prices will be increased, as well as raising its prices.

The amendments came to balance the budget and control the budget deficit.

The new prices are set as follows:
• LE 3.5 increase for cigarette packs priced up to LE 18
• LE 5.5 increase for cigarette packs priced between LE 18-30
• LE 6.5 increase for cigarette packs priced above LE 30

In July, the Eastern Company raised the price of three cigarette brands by 4.2 – 17.6 percent (LE 0.50 – LE 2.25, $0.028 – $0.126).

In December 2016, the price of Merit, Marlboro and LM cigarettes rose by 10 percent; equal to LE 20 per cartridge and LE 2 per pack.

According to CAPMAS 2015 survey linking smoking to income, expenditure and consumption, 41.2 percent of employees smoke, and the average annual expenditure of an Egyptian household on smoking is LE 1,722 ($95.14).