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First with the News

Egyptian Govt Approves New Tobacco VAT

October 30, 2023
in Top Stories, World
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By Ebi Kesiena

It has been reported by Ahram Online that Egypt is set to impose a new value-added tax of EGP0.50 ($0.02) on local tobacco sales.

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On Monday, Fakhri El-Fiqi, head of the House’s Planning and Budget Committee stated that the House of Representatives approved an amendment to the 2016 VAT law to allow for the new duty, which will apply to both “hot” tobacco (cigarettes) and “liquid” tobacco.

According to El-Fiqi, the next tax would generate up to EGP8 billion in revenues for the state budget.

“The new amendment will also encourage tobacco companies to increase production in a way that shall stem the rise in cigarette prices and satisfy consumers,”

In recent months, Egypt’s tobacco market has been in turmoil, with consumers facing cigarette shortages and price hikes.

However, as recommended by the World Health Organization, the measure has been praised by some lawmakers for its effectiveness in preventing smoking.

“There is no question that the hike in cigarette prices will push more citizens, particularly young people, to give up smoking,” said Hesham El-Hosary, chairman of the House’s Agriculture and Irrigation Committee.

Although, in contrast to other countries, cigarettes in Egypt remain cheap despite the recent tax hike.

 

 

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