Some of us have been given yet another reason to quit: State-owned tobacco giant Eastern Company published a new price list for its tobacco products starting today that raises prices between 12% and 33%, according to an EGX disclosure (pdf) from the company.

The new prices came in the wake of a new VAT amendments: The EGX30-listed company raised prices legislators on Monday passed passed into law an EGP 0.50 increase in tax on all tobacco products and allowed companies to raise prices by 12% annually for the next five years without moving into a higher per-pack tax bracket.

Higher prices should increase supply and tackle the black market: Eastern’s new prices and the permission to raise prices over the coming five years should allow manufacturers to confidently increase supply and undercut wholesalers who have been selling cigarettes far above the sticker price. Prices have spiked in recent months as FX shortages and the rising cost of production squeezed supply — and wholesalers and retailers took advantage.

Cabinet thinks this is going to be a money earner: House Planning and Budget Committee head Fakhri El Fiqi said that the tax will raise some EGP 8 bn in the House last month.

DATA POINT: Around 33% of adult males in Egypt smoke, according to CAPMAS figures out earlier this year.

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