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Foreign tobacco companies in Egypt reject new cigarette price increases: Official - Daily News Egypt

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Foreign tobacco companies in Egypt reject new cigarette price increases: Official

Tensions prevail in cigarette market, traders exploit the situation to raise prices, according to CTA head in Cairo, Giza


Tensions prevail in cigarette market, traders exploit the situation to raise prices, according to CTA head in Cairo, Giza  (Photo by Laurence Underhill\DNE)
Tensions prevail in cigarette market, traders exploit the situation to raise prices, according to CTA head in Cairo, Giza
(Photo by Laurence Underhill\DNE)

The majority of the foreign tobacco companies presented the government with memorandums rejecting of the recent increase in cigarettes prices, according to an official source in a foreign tobacco company operating in Egypt.

The source stated that the move to hike cigarette taxes further took place without their involvement.

The source continued to say that his company is preparing another memorandum for Minister of Finance Hany Kadry Dimian. The memorandum will state the company’s refusal of the latest price hike, and will demand that the government discuss the matter with the companies. The source added that the actual price changes made by the government would reduce the companies` profits.

Consultations were held, during which representatives from various foreign tobacco companies working in the Egyptian market participated, and they agreed not to accept any more cigarette price increases made by the government.

Osama Salama, President of the Cigarette Trade Association (CTA) in Cairo and Giza, announced that the small and large traders sell cigarettes at different prices, noting that there is no monitoring and some vendors withhold cigarettes in anticipation of further price hikes.

According to a press statement by Salama on Saturday: “The cigarettes market is witnessing disturbance following the government’s decision to increase the cigarettes prices, which flourished the trade of Chinese and smuggled cigarettes.”

The sales have increased by approximately 50% and prices have increased by approximately 25%, placing the final price of the pack for the consumer at approximately EGP 6, after it was sold for just EGP 2.5 four years ago.

Salama noted that among the association’s efforts to protect citizens from the traders’ exploitation, and the large shops that manipulate the market, they announced the official final prices of cigarettes in accordance with Law No. 12 of 2015 issued on February 21, stating the tax increase on all cigarettes brands.

Regarding Eastern Company products, the final price of Cleopatra, Super Star, Box and Queen’s packs amounts to EGP 9, while Boston, Light, Florida, Belmont, Hollywood, Mondial and Capitol amounts to EGP 8. The price of Cleopatra red, blue, silver and white is now EGP 8, while Cleopatra Black Label is EGP 11; Golden is now EGP 7.5 and Queen is EGP 8.5.

Regarding Philips Morris products, Marlboro and Merit packs amount to EGP 23; L&M packs cost EGP 16 and Next packs cost EGP 15.

The prices of British American Tobacco cigarettes are EGP 17 for Rothmans, and EGP 14 for Viceroys.

Meanwhile, as for the products of Imperial Tobacco, the price of a Winston pack is EGP 15, Davidoff is EGP 24, and P&S is EGP 25.

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https://dailyfeed.dailynewsegypt.com/2015/02/28/foreign-tobacco-companies-in-egypt-reject-new-cigarette-price-increases-official/
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