Egypt to raise tobacco tax revenues by $397.50mn in FY2017/18

Egypt is planning to raise its revenues from taxes imposed on tobacco to seven billion Egyptian pounds ($397.50 million) within the financial year 2017/2018, a government document said.

The country is targeting around 54.545 billion ($3.10 billion) in revenues from tobacco taxes, according to a document released by the county’s Finance Ministry on Monday.

Egypt has been increasing taxes and cutting subsidies to narrow its budget deficit as part of economic reforms tied to a $12 billion International Monetary Fund programme aimed at boosting the economy.

Egypt imposed a valued-added tax on non-essential goods last year in the months leading to its signing of the three-year IMF deal in November.

20.2 percent of Egyptians above the age of 15 are smokers, according to 2016 statistics.

Source: Reuters