EXCLUSIVE- Is Big Tobacco mounting a power play after imposition of new sin tax? Tobacco companies are not happy with new sin tax, and execs at three of them are suggesting a new EGP 0.75 per pack sin tax to fund the universal healthcare system could prompt them to hold off fresh investment in Egypt. A source at one international label, who who spoke on condition of anonymity, told us that the company was putting on hold some GBP 30 mn in new investment this year. The company had been looking to bring to market a “low cost” foreign brand to compete with the likes of Cleopatra. The new sin tax, the exec said, would make it impossible for their challenger brand to compete with local low-cost brands.

At the heart of the issue: They want a new tax framework: Tobacco companies held meetings with the Finance Ministry before the sin tax came into effect to push for a new tax framework. The ministry had imposed a sin tax hike of EGP 0.75-1.25 back in 2017. The meetings have not gone well, the sources tell us.

A state monopoly at play here? Meanwhile, Eastern Tobacco has reduced the price of Cleopatra ‘King Size’ cigarettes — the country’s cheapest cigarette brand — by EGP 0.50 to EGP 15.50 per pack, Ahram Online reports. The company had raised the price by EGP 2 last Thursday as part of the 10-15% markup in its prices.