Just because certain goods are exempt from the value-added tax (VAT) does not mean that their prices won’t increase, according to a number of commentators speaking to the local press. Magdy Morshid, chair of the House of Representatives’ Health Committee, takes this view on meds. While both imported and domestically manufactured products and their active ingredients are exempt, other non-active ingredients and production inputs are not, Morshid tells Parlmany. In fact, the issue never even came up with the Finance Ministry during VAT talks, he says. Osama Rostom, head of the pharma division of the Federation of Egyptian Chambers of Commerce, agrees that the industry’s products will rise in price as a result of the VAT.

The issue extends outside the pharma industry, with Abdel Rasool Abdel Al Hady, board member at the Egyptian Taxation Society stating that since the value chain of exempt goods are being taxed, then inevitably the prices of these goods and services will increase, something the government had stated would not happen in the run up to the VAT vote in the House, Al Mal.

And if you a smoker, you can expect prices to go up by EGP 1-5 per pack depending on the brand as soon as the VAT takes effect in October, said Ibrahim Imbaby, head of the tobacco division of the Federation of Egyptian Industries.

Oh, and we missed this the first time around, but: Mobile phone services and ethanolic beverages will be more expensive under the VAT. Taxes on beer and wine are up 50%, while that on mobile services are up 8%.