Egyptian Parliament approves 12% annual hike in cigarette prices
Under the new legislation, both the minimum and maximum retail price thresholds for cigarettes will increase by 12% annually over three years, starting on 5 November 2025. The rate of increase may be adjusted downward based on changes in production costs.
This measure is part of broader government efforts to expand the tax base and raise public revenues amid ongoing financial pressures.
Specifically, the amendments raise the maximum retail price for local cigarettes sold for less than EGP 38.88 to EGP 48. Cigarettes priced between EGP 38.88 and EGP 56.44 will now fall within a new range of EGP 48 to EGP 69. For imported cigarette brands previously priced up to EGP 56.44, the cap will also be raised to EGP 69.
These price thresholds are set to increase annually by 12% through 2028.
In addition, the law introduces a significant change to the taxation of alcoholic beverages, shifting from a percentage-based system to a fixed-rate structure. Taxes will now be levied based on alcohol content, with an annual increase of 15% for three consecutive years..
© 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).
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Forward-Looking Statements Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of Egypt Kuwait Holding Company (EKH). Such statements involve known and unknown risks, uncertainties and other factors; undue reliance should not be placed thereon. Certain information contained herein constitutes 'targets' or 'forward-looking statements,' which can be identified by the use of forward-looking terminology such as 'may,' 'will,' 'seek,' 'should,' 'expect,' 'anticipate,' 'project,' 'estimate,' 'intend,' 'continue' or 'believe' or the negatives thereof or other variations thereon or comparable terminology. Actual events or results or the actual performance of EKH may differ materially from those reflected or contemplated in such targets or forward-looking statements. The performance of EKH is subject to risks and uncertainties.
