Egypt Hikes Cigarette Tax Again

February 23, 2015 Taxation in Egypt

CAIRO – Egypt is raising the rate of tax on cigarettes for the third time in a year, as the government tries to tackle the significant budget deficit.

Over the weekend the government of Egypt announced that the rate of tax applied on the sale of cigarettes will be raised, in an effort to raise extra tax revenues needed to help close the national budget deficit, and now the tax rate on the sale of locally produced and imported cigarettes priced at less than EGP 10 will go up by EGP 2.25 per pack, while the tax on packets priced between EGP 10 and EGP 16 will rise by EGP 3.25, and the all products costing over EGP 16 will go up by EGP 4.25.

This is not the first time in over the last year that the taxes on cigarettes were hiked, as only in July last year the rates were increased by 25 to 40 percent per pack, while in February 2014 the taxes were raised by EGP 0.5 to EGP 1.5.

It is currently estimated that 27 million Egyptians currently smoke, a level equivalent to approximately 30 parent, of the population, and approximately 19 billion cigarettes are smoked in the country each year.

Photo By: Curran Kelleher