Minister of Finance Mohamed Moeit issued a decision to set the prices of the sale of tobacco products, which are to be used to calculate the amount of value added tax (VAT), in the light of the introduction of the comprehensive social health insurance system, according to a statement by the Ministry of Finance issued on Monday.
The new health insurance law introduced in January included a limited increase in the value of VAT applied on foreign and Egyptian cigarettes sold locally, which began collection on Thursday.
The decision set the price for the sale of the Marlboro (Red/Gold), Kent and Davidoff cigarettes at EGP 37, Marlboro medium at EGP 35, Merit and Dunhill at EGP 40, Camel at EGP 34, while L&M and Lucky Strike were set at EGP 29 and the type of Rothman and Winston at EGP 27.
In regard to local cigarettes Cleopatra Black Label and Time, were set at EGP 22, while Cleopatra super was set at EGP 18 pounds, Target and Cleopatra box (Gold, red and blue) at EGP 17, and EGP 15.5 for the Cleopatra King (soft packet).
According to Enterprise, foreign tobacco companies are not happy with the new tax, and execs at three of them are suggesting that it could prompt them to hold off fresh investment in Egypt.
Enterprise reported that a source who spoke on the condition of anonymity, said that one of the foreign tobacco companies that he works for to put on hold some £30mn for new investment this year.
