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Sunday, 26 November 2017

New cigarette prices signed into law, officially come into effect

New cigarette prices signed into law: President Abdel Fattah El Sisi officially signed into law on Thursday the latest tax increase on cigarettes, Al Borsa reports. Fixed tax rates for cigarettes sold for less than EGP 18 now stand at EGP 3.50, while cigarettes costing between EGP 18 and 30 will be taxed EGP 5.50 and those sold at more than EGP 30 will be taxed EGP 6.50. The old fixed tax rates were EGP 2.75, EGP 4.25, and EGP 5.25, respectively.

Eastern Company and Philip Morris each released a list of their new cigarette prices following the implementation of the tax increases. A pack of Merit will now retail for EGP 35, while Marlboro and L&M cigarettes now cost EGP 34 and EGP 27 per pack, respectively, Philip Morris announced, Al Mal reports. The new prices came into effect on Friday. Eastern Company’s cheapest offering now sells for EGP 14 a pack, up from EGP 11.50 before the implementation of the tax increase, the company announced in a new price list issued to the EGX. Arqaam Capital economist Reham El Desoki says the cigarette price increases will not have a significant impact on inflation rates as tobacco only has a 2% weighting in the consumer price index, according to Reuters. The newswire notes that Eastern Company has a 70% market share domestically.

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