Egyptian tobacco firms expect to generate LE150 million in extra sales during the upcoming parliamentary election campaign, an industry insider has said.
Parliamentary candidates traditionally provide drinks, cigarettes and sheesha to people who attend election rallies and speeches, according to Osama Salama, president of the Giza and Cairo tobacco traders association.
Increased sales are therefore expected during the election campaign period.
An expected 8-10 percent increase in sales during the campaign period would generate extra tax revenues of up to LE112 million, the association predicts.
Egypt is expecting annual tax revenue on cigarettes to total around LE5 billion, after a tax hike in February (the third increase in a year), said cabinet spokesperson Hossam Qawish.
Major traders are sending more requests for orders from tobacco companies Philip Morris International (PMI), British American Tobacco (BAT), Japan Tobacco International (JTI) and Al-Sharqiya Tobacco, Salama said.
Parliamentary elections were delayed after a court ruled part of the election law unconstitutional.