No relation for cigarettes’ price hike to VAT: Tax Authority

CAIRO – 12 July 2017: Public Taxes Authority announced in a Wednesday statement that Eastern Company’s decision raising cigarettes’ price has no relation to any amendments in the Value Added Tax (VAT) law.

The Authority pointed to that according to the Ministry of Finance, any amendment in the taxes price requires a legislation, which did not happen.
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Eastern Co’s move was an individual decision taken without the coordination with the Authority, the statement said.

Earlier today, 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) as of Wednesday, the company announced.

The prices were increased as follows: Cleopatra King Size from LE 10.50 to LE 11.50, Cleopatra Queen soft pack from LE 12 to LE 12.50 and Cleopatra Super from 12.75 to LE 15.

The company raised the prices to curb the increase in the production costs, Eastern Co’s Chairman Mohamed Othman Haroun told Reuters over the phone.