Cigarette price increase to take into account existing fixed tax

CORRECTION- Cigarette prices could see a net increase of EGP 0.75 for packs costing less than EGP 18, EGP 1.25 for those sold for EGP 18-30, and EGP 1.25 for packs sold for more than 30. The new increases represent a rise in the fixed tax per pack. The old fixed tax rates were EGP 2.75, EGP 4.25, and EGP 5.25, respectively. We calculated the increases incorrectly in yesterday’s issue as we did not take the existing tax into account. Still, it is not clear what the final market price on cigarettes will be as we await new price announcements by producers. Eastern Company announced yesterday that it has not taken any decision on pricing yet. The company also halted all cigarette deliveries to the market yesterday in anticipation of President Abdel Fattah El Sisi signing off on the tax increase, Chairman Mohamed Othman Haroun tells AMAY. H/t Zein M on this one.