According to official news outlets, Egyptian president Abdel Fattah Al Sisi has approved the ratification of a law that would the Value Added Tax increase on tobacco products. The amendments to the VAT tax law in question, no. 67 of 2016, were approved previously by the Egyptian Parliament but were pending approval from the presidential cabinet before their effective implementation. As it stands, tobacco products are set to increase in prices, with the VAT law taking into consideration electronic cigarettes, vapes, e-liquids, heated tobacco and their derivatives, for the first time. The price surge is explained by the state’s 2019/20 budget’s aim to profit 8.9 EGP million from smoking products, as per Al Ahram, as well as the need to regulate and unify prices among vendors. Under the new amendments, the VAT on local cigarette products are to increase by 0.50 LE, with a 15 percent increase on shisha products. Alternatively, the VAT will increase by 1 EGP on imported cigarettes as well as 25 percent on foreign shisha products. Moreover, Egypt’s popular syrup ‘me3assel’ tobacco mix for shisha will also see a surge an exponential surge pricing: 165 percent…
