The Eastern Company, Egypt’s cigarettes monopoly, reported net profit for fiscal year (FY) 2014/2015 rose 19.2%, the company said in a statement to the Egyptian Stock Exchange (EGX) on Sunday.
Net profits registered EGP 1.08m compared to EGP 908,405 in the previous fiscal year, the company added.
Government revenues from the cigarette tax reached EGP 12.4bn during the last six months of 2014, double the tax on Suez Canal profits, according to the latest Ministry of Finance data.
In Egypt, there are approximately 15 million smokers, more than half of whom reside in the countryside. The number of smokers is expected to increase to 16 million, according to the tobacco traders association.
Smokers who currently spend EGP 23 on a cigarette pack, will see their annual expenditure on cigarettes amounting to approximately EGP 8,395.
There are 30 local brands in the Egyptian market approved by the government, while 20 brands are imported legitimately, and approximately 200 other illegal brands.
In February, the government issued a decision for the Egyptian Tax Authority to create and collect a sales tax on cigarettes of approximately 50 piasters. This would be for every 20 cigarettes produced locally and sold in the local market, and would be used for the benefit of health insurance fees.
The Customs Department, when collecting customs duties on imported cigarettes, handles the collection of the amount mentioned for every 20 cigarettes.
