• June 15, 2024

Tax hike approved

 Tax hike approved

Egypt’s parliament voted on Tuesday in favor of an amendment of the value added-tax (VAT) law that increases the tax on cigarettes and other tobacco products, reports Ahram Online.

A government document said that the revenues expected from the increase in cigarette prices will be spent on social protection programs such as a new national health insurance system.

The note said that the maximum prices cigarettes will be increased at different rates.

“The price of the first kind—which is sold at less than EGP18 [$1.02]—will be increased by EGP3.50 per pack; the price of the second—which is sold between EGP18 and EGP30—will be increased by EGP5.50, and the price of the third—which is sold at more than EGP30—will be increased by EGP6.50.”

The VAT on different kinds of tobacco products, such as the popular shisha tobacco, will be increased to 175 percent from the current 150 percent.

Minister of Finance Amr El-Garhy told the budget committee that the increase is expected to generate between EGP7 billion and EGP8 billion in revenues.