Egypt Eastern Company raises tobacco prices to absorb increase in costs: Chairman

Muhammed Khalid , Wednesday 8 Nov 2023

Egypt’s major tobacco producer Eastern Company raised the prices of its products to absorb part of the rising costs of production inputs after the devaluation of the Egyptian pound, the company’s Chairman Hany Aman told Ahram Online on Wednesday.

Stock image of a cigarette pack.
Stock image of a cigarette pack.

The prices of local cigarette brand Cleopatra increased from EGP 24 to up to EGP 27 for the 20-cigarette pack.

Other brands such as Boston, Belmont, and Mondial also increased from EGP 24 to EGP 27 per pack while the price of Moreover, Viceroy, and Pallmall brands increased from EGP 35 to EGP 42.

Furthermore, the prices of Hookah tobacco have increased to EGP50 and EGP85 for 250-gram and 500-gram packs of the Muʽassel Saloum brand.

The Egyptian state-owned company is coordinating with oversight authorities to control the market and it cancels contracts with any vendor or distributor that does not adhere to official prices, said Aman.

Additionally, the Eastern Company has increased its production to increase the supply of all tobacco types to help contain prices and ensure stability in the market, according to Aman.

On 30 October, Egypt’s parliament – the House of Representatives – approved a government-drafted amendment to the VAT law to impose a tax of EGP 0.50 on tobacco products sold on the local market.

The pack of the local brand Cleopatra Box, for instance, soared by 100 percent to EGP50 from less than EGP 25. 

A total of 51 factories in Egypt produce 85 billion cigarettes every year which is more than enough to meet demand in the market.

Around 18 million Egyptians over the age of 15 out of a population of more than 104 million smoke, according to recent official data.

The percentage of Egyptians over the age of 15 who smoke has dropped from 17.3 percent in 2020 to 16.8 percent in 2022, according to the data.

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