Ibrahim Embaby, head of the Tobacco Division at the Federation of Egyptian Industries, announced the implementation of new price increases in cigarette pricing brackets, following amendments approved by the House of Representatives as part of the Value Added Tax (VAT) law reform. The move aims to regulate the market, balance state interests with consumer rights, and boost tax revenues to support the public budget.
Embaby explained that the maximum price for the first tier of cigarette prices has risen to EGP 48, up from EGP 38.8, allowing manufacturers and importers to adjust prices accordingly. The second tier now ranges between EGP 48 and EGP 69, while the third tier covers prices starting from EGP 69 and above.
These adjustments represent an average 12% increase across pricing tiers, providing greater flexibility for companies in setting prices, especially in light of rising production and logistics costs. The state remains committed to a medium-term economic framework based on structured financial planning.
During the session chaired by Dr. Hanafy Gebaly, the House of Representatives approved raising both the minimum and maximum price limits for locally produced and imported cigarette brands. It also endorsed an annual increase of 12% for a period of three years starting from November 2025. The Cabinet may lower this rate based on a proposal from the Minister of Finance, depending on production cost changes and broader economic conditions.
The amendments also included:
Subjecting commercial-use administrative properties to tax, similar to retail stores, to reinforce tax equity.
Restructuring the alcohol tax, introducing a fixed tax rate that will increase 15% annually for three years, then 12% annually, in line with international health standards.
Imposing a 10% tax on crude oil, removing the previous exemption, as part of the state's strategy to boost revenues from strategic sectors.
Expanding VAT coverage to certain advertising services and news agency services, while updating related schedules to support financial inclusion and improve tax collection efficiency.
These reforms are part of a comprehensive economic plan aiming to strengthen public revenues without negatively impacting the market or consumers. The gradual and balanced implementation aligns with the Unified Public Finance Law, which outlines a medium-term budgetary framework to ensure effective financial resource management over the coming years.
