New Taxes on Cigarettes will support Egypt’s Health Sector

The decree to issue further taxes on cigarettes in Egypt aims to support the state budget and to fund the government expenditures on medical insurance and citizens’ healthcare, cabinet spokesman said on Tuesday.

According to spokesman Hossam Qawish, the new amendments to sales taxes on local and imported cigarettes come in accordance with Egypt’s commitments to the World Health Organization’s Framework Convention on Tobacco Control (FCTC).

The Framework Convention on Tobacco Control aims to eliminate the growing illicit tobacco trade in Egypt and other countries.

Egypt was among the first countries to sign the World Health Organization’s Framework Convention on Tobacco Control (FCTC), the world’s first public health treaty.

In 2007, the government adopted legislation requiring: graphic pictures on all tobacco packs, a ban on cigarette marketing and advertisements, a ban on tobacco use in all public places except restaurants and bars, and a tax increase on tobacco products.

Qawish added that the newly issued increase does not exceed 50 piaster for local brands and EGP1 for foreign brands, noting that the revenue of cigarette tax would range between EGP5-5.5 billion a year

The largest part of the revenues would be allocated to improve healthcare services all over Egypt of which EGP 1.6-1.7 billion are designated for health insurance sector.