{"id":626939,"date":"2018-07-16T03:59:39","date_gmt":"2018-07-16T03:59:39","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/07\/16\/big-tobacco-withholding-capex-over-new-sin-tax\/"},"modified":"2018-07-16T03:59:39","modified_gmt":"2018-07-16T03:59:39","slug":"big-tobacco-withholding-capex-over-new-sin-tax","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/07\/16\/big-tobacco-withholding-capex-over-new-sin-tax\/","title":{"rendered":"Big tobacco withholding CAPEX over new sin tax?"},"content":{"rendered":"

<\/a> EXCLUSIVE- Is Big Tobacco mounting a power play after imposition of new sin tax?<\/strong> Tobacco companies are not happy with new sin tax, and execs at three of them are suggesting a new EGP 0.75 per pack sin tax to fund the universal healthcare system<\/a> could prompt them to hold off fresh investment in Egypt. A source at one international label, who who spoke on condition of anonymity, told us that the company was putting on hold some GBP 30 mn in new investment this year. The company had been looking to bring to market a \u201clow cost\u201d foreign brand to compete with the likes of Cleopatra. The new sin tax, the exec said, would make it impossible for their challenger brand to compete with local low-cost brands.<\/p>\n

At the heart of the issue: They want a new tax framework:<\/strong> Tobacco companies held meetings with the Finance Ministry before the sin tax came into effect to push for a new tax framework. The ministry had imposed a sin tax hike of EGP 0.75-1.25 back in 2017. The meetings have not gone well, the sources tell us.<\/p>\n

A state monopoly at play here? <\/strong>Meanwhile, Eastern Tobacco has reduced the price of Cleopatra 'King Size' cigarettes \u2014 the country's cheapest cigarette brand \u2014 by EGP 0.50 to EGP 15.50 per pack, Ahram Online reports<\/a>. The company had raised the price by EGP 2 last Thursday as part of the 10-15% markup in its prices.<\/p>\n","protected":false},"excerpt":{"rendered":"

EXCLUSIVE- Is Big Tobacco mounting a power play after imposition of new sin tax? Tobacco companies are not happy with new sin tax, and execs at three of them are suggesting a new EGP 0.75 per pack sin tax to fund the universal healthcare system could prompt them to hold off fresh investment in Egypt. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"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":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-626939","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"1348c167-4f99-443d-adad-2874bd49c41b","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[626934],"teaser":"","voice_url":""},"yoast_head":"\nBig tobacco withholding CAPEX over new sin tax? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/07\/16\/big-tobacco-withholding-capex-over-new-sin-tax\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Big tobacco withholding CAPEX over new sin tax?\" \/>\n<meta property=\"og:description\" content=\"EXCLUSIVE- Is Big Tobacco mounting a power play after imposition of new sin tax? 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The\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/2\/318.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":638373,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/10\/03\/egypt-projecting-revenues-from-sin-tax-to-increase-egp-7-bn-this-fiscal-year\/","url_meta":{"origin":626939,"position":1},"title":"Egypt projecting revenues from \u2018sin\u2019 tax to increase EGP 7 bn this fiscal year","author":"enterpriseam admin","date":"3 October 2017","format":false,"excerpt":"Egypt is projecting that revenues from the \u2018sin\u2019 tax on tobacco will increase EGP 7 bn in FY2017-18 to EGP 54.5 bn, according to the Finance Ministry's budget explainer (pdf). 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Revenues were up\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":609736,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/11\/09\/eastern-hikes-smoke-prices-by-up-to-33\/","url_meta":{"origin":626939,"position":4},"title":"Eastern hikes smoke prices by up to 33%","author":"enterpriseam admin","date":"9 November 2023","format":false,"excerpt":"The hike in prices follows recent amendments to to tobacco taxes","rel":"","context":"In "RETAIL"","block_context":{"text":"RETAIL","link":"https:\/\/enterpriseam.com\/egypt\/category\/retail\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/9\/106.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":553563,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/08\/new-tobacco-license-terms\/","url_meta":{"origin":626939,"position":5},"title":"New tobacco license terms","author":"enterpriseam admin","date":"8 December 2021","format":false,"excerpt":"The tobacco industry is less than pleased with the latest set of conditions for a license to manufacture cigarettes, which the Industrial Development Authority (IDA) issued earlier this week, according to Masrawy. 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