Eastern Company pays LE 42B taxes for FY 2016/17

CAIRO – 16 August 2017: Eastern Company has paid LE 42 billion ($2.36 billion) taxes and fees last year, while its earning stood at about LE 1.5 billion, Minister of Public Business Sector Ashraf al-Sharkawy said Wednesday.

Eastern Company’s

net profit

rose 17.8 percent to LE 1.7 billion ($94.8 million) in the fiscal year of 2016/17 compared to LE 1.47 billion in the year-ago period.

Revenues increased 37.7 percent to reach LE 10.5 billion in FY 16/17 from LE 7.7 billion in the previous fiscal year.

In July, the company

raised the price of three cigarette brands

by 4.2 – 17.6 percent (LE 0.50 – LE 2.25, $0.028 – $0.126).

He price hike decision was followed by the

Public Taxes Authority

stating that Eastern Company’s decision raising cigarettes’ price has no relation to any amendments in the Value Added Tax (VAT) law.

Eastern Co’s move was an individual decision taken without the coordination with the Authority, the statement said.

The minister added that the companies of the public business sector achieved unprecedented results in FY2016/17, where they registered LE 6 billion net profits compared to LE 1.6 billion in the previous fiscal year.

The gaining companies leveled up to 73 firms and the number of losing companies decreased, Sharkawy noted.