Ministry of Finance sets new prices of cigarettes

CAIRO – 16 July 2018: Minister of Finance Mohamed Ma’it issued the ministerial decree no. 288 of 2018 setting the prices of the sale of tobacco products, with the value added taxes (VAT) calculated.

The ministry clarified in a press release Monday that this decree comes in light of the implementation of the comprehensive social health insurance system, whose law stipulates a limited increase in the price of VAT on foreign and Egyptian cigarettes that are sold locally.

The new law was issued in January and was activated on Thursday, June 12.

The Ministry of Finance said that the collection of these taxes, in addition to other sources of funding and financial contributions from the State Treasury, will finance the implementation of the new comprehensive health insurance system.

The ministerial decision set the price for the sale of Marlboro (Red-Gold), Kent and Davidoff cigarettes at LE 37, Marlboro Medium at LE 35, Merit and Dunhill at LE 40, Camel at LE 34 and L&M and Lucky Strike at LE 29.

The Rothmans and Golnaz Winston will be sold for LE 27, Next and B & S for LE 25, Pall Mall and Viceroy for LE 24, Cleopatra Black label, Time and Golden West for LE 22, Cleopatra Super for LE 18, Target and Cleopatra Box (Gold, red and blue) for LE 17, Cleopatra King (Abba Paper) for LE 15.5, Cleopatra Queen (paper) for LE 16, and Mondial (red -Modern blue), White, Boston and Belmont will be sold for LE 16.5.

“In case of any manipulation in the prices, it will be a tax evasion and the dealer will be punished in accordance with the penalties prescribed by Articles 67 and 69 in the law VAT, and the tax will be calculated in that case based on the actual selling price to the public,” the release stated.

The statement added that the health sector witnessed an increase in its financial allocations during the new fiscal year to reach LE 80.7 billion, compared to LE 69.5 billion, with an increase of LE 11.2 billion in order to provide the best possible health care services for citizens at all levels.

The ministry's statement said that the yields of cigarette fees are expected to reach LE 4 billion, which will be fully channeled to health insurance.

The statement also noted that the financial allocations for the new comprehensive health insurance system amounted to LE 2.3 billion which includes providing health support to the needy by LE 1.5 billion, in addition to health care programs for children under school age, school-age students, farmers and women workers.