It became high Cigarette prices In Egypt, it is an issue that concerns a wide segment of consumers, as sudden changes in prices greatly affect the family budget.
This increase comes amid increasing fears of future increases, which raises questions about the motives for the decision and its effects. In this context, cigarette prices in Egypt witnessed an increase of 12% yesterday, Tuesday, November 5, 2024, which caused controversy and questions about the reasons for this increase at this time. .
What is the reason for the increase in cigarette prices?
This increase raised many questions about the motives behind the rise in cigarette prices at this time. According to Egyptian media reports, there are several reasons behind this increase, which are summarized in the following points:
1. Implementation of the provisions of the value-added tax and its amendments
This increase comes as part of implementing the provisions of the Value Added Tax Law, which includes amending tax brackets and increasing them within specific annual limits. These amendments include periodic increases in cigarette prices in line with tax collection requirements.
2. Implementing the Comprehensive Health Insurance Law
This increase also relates to the implementation of the provisions of the Comprehensive Health Insurance Law No. 2 of 2018, which relies in part on imposing additional fees on some products, including cigarettes, in order to finance the health system and ensure its sustainability. Thus, the increase aims to provide financial resources to support the health sector.
When will the new cigarette prices come into effect?
With the announcement of the increase in cigarette prices, many consumers wondered when the new prices would take effect. According to the government decision, the application of the revised cigarette prices began in the Egyptian markets as of Tuesday, November 5, 2024, which means that the new prices became effective immediately upon their announcement.
Reactions and future expectations
This decision sparked mixed reactions among consumers, as some believe that this increase may burden citizens, while others consider it necessary to support government health projects.
Citizens are closely awaiting price developments in the coming period, especially in light of the rising costs of living, as some fear that this increase will be the beginning of other future rises with the increase in expected tax amendments.
The decision to increase cigarette prices constitutes a new step within the government’s plans to enhance its revenues from various sectors, including the tobacco sector. As these increases continue to be implemented, the question remains about their impact on cigarette consumption, and whether they will lead to changes in consumer habits, especially in light of… Successive rises in the prices of goods and services.