{"id":609574,"date":"2023-11-07T00:00:00","date_gmt":"2023-11-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/11\/07\/new-vat-on-cigarettes-gets-final-sign-off\/"},"modified":"2023-11-07T00:00:00","modified_gmt":"2023-11-07T00:00:00","slug":"new-vat-on-cigarettes-gets-final-sign-off","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/11\/07\/new-vat-on-cigarettes-gets-final-sign-off\/","title":{"rendered":"New VAT on cigarettes gets final sign off"},"content":{"rendered":"

Cigarette tax hike gets signoff from up top<\/strong>: The new VAT law on cigarettes, which adds EGP 0.50 to all tobacco products including heated tobacco products and liquid tobacco, was passed into law yesterday, according to a decision published in the Official Gazette. The tax is expected to raise some EGP 8 bn<\/a>, according to House Planning and Budget Committee head Fakhri El Fiqi. MPs passed the draft amendment last week. <\/p>\n

The official line is that the tax will somehow help stabilize the market.<\/strong>Retailers have been selling smokes far above the sticker price as supply has contracted. (Blame rising production costs and the FX crunch for poor supply.) The extra tax receipts will (somehow) help manufacturers shoulder the costs and increase production, the head of the Federation of Egyptian Industries\u2019 tobacco division, Ibrahim Imbaby, said on Alaa Maso\u2019uleety last night (watch, runtime: 10:40<\/a>). We\u2019re not entirely sure how that works \u2014 we\u2019re looking into it and would love to hear from anyone with an explanation of how a new tax will help funnel cash into the coffers of manufacturers.<\/p>\n

FX from Eastern Company\u2019s new Emirati investor is also helping: <\/strong>State-owned tobacco manufacturer Eastern Company \u2014 which produces most of the country\u2019s cigarettes, and which has felt pressure from the FX crunch and soaring inflation \u2014 received an injection of USD after selling a significant minority stake<\/a> to an Emirati investor in September, which has also supported production costs, Imbaby said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The new VAT is expected to raise EGP 8 bn<\/p>\n","protected":false},"author":1,"featured_media":609575,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7344],"tags":[247,72,187,69,7401],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-609574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislation-watch","tag-eastern-company","tag-enterpriseam","tag-legislation-watch","tag-tax","tag-tobacco","wpautop","entry"],"acf":{"mongo_id":"0c502a26-498a-4fe8-978a-635fcc380510","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/11\/331.jpg","photo_position":"above","homepage_title":"","full_issue_title":"New VAT on cigarettes gets final sign off","related_issue":[609560],"teaser":"The new VAT is expected to raise EGP 8 bn","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/11\/.9c33120f-2086-427d-982b-560f4e45a654.mp3"},"yoast_head":"\nNew VAT on cigarettes gets final sign off - 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The company justified the increases with the 100 bps rise in the value-added tax (VAT) that came into effect with the start of the new\u2026","rel":"","context":"In "Basic Materials + Commodities"","block_context":{"text":"Basic Materials + Commodities","link":"https:\/\/enterpriseam.com\/egypt\/category\/basic-materials-commodities\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":667596,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/06\/30\/house-approves-amendments-to-vat-law-on-select-items\/","url_meta":{"origin":609574,"position":5},"title":"House approves amendments to VAT Law on select items","author":"enterpriseam admin","date":"30 June 2025","format":false,"excerpt":"The amendments are set to affect the prices of construction and contracting services, crude oil, cigarettes, and alcoholic beverages","rel":"","context":"In "Tax"","block_context":{"text":"Tax","link":"https:\/\/enterpriseam.com\/egypt\/category\/tax\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/11\/466.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/609574","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=609574"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/609574\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/609560"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/609575"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=609574"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=609574"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=609574"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=609574"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=609574"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}