Egypt's largest cigarette producer Eastern Company said it will not raise pack prices until the president ratifies an amendment to laws on value-added taxes (VAT) on tobacco products, news site Ahram Online reported.

The House of Representatives has approved an amendment to laws on VAT for cigarettes and other tobacco products that will see pack prices increase by at least EGP 3.50 (EUR .17), reportedly seeking to boost spending on social protection and the national health insurance system. But Eastern Company told Ahram Online prices for its brands will remain the same until President Abdel-Fattah El-Sisi ratifies the changes.
Stating the company has not been officially notified on price hikes, press spokesperson Morsi Abu Alam of Eastern Company was quoted as saying, “Once the law is approved by the president and the company receives official notification about it, the hikes will immediately be put into effect”.
Eastern Company controls around 70 per cent of the cigarette market in the country.
The news site previously reported details of the VAT increases: VAT on packs costing less than EGP 18 will increases by EGP 3.50; packs costing between EGP 18 and EGP 30 will see VAT hikes of EGP 5.50; a VAT increase of EGP 6.50 will apply to packs costing more than EGP 30. VAT on shisha tobacco will increase to 175 per cent instead of the current 150 per cent, the news site reported.