Egypt tapped for leading role in WB's 1.5b health coverage push    Asia-Pacific stocks mixed on Tuesday    Novartis plans expansion in Egypt – Cabinet    Egypt welcomes 25-nation statement urging end to Gaza war    Famine kills more Gaza children as Israel tightens siege amid global outrage    Kuwait's Crown Prince, Egyptian minister discuss strengthening cooperation    Egypt's FM seeks deeper economic, security ties on five-nation West Africa tour    Egyptian Drug Authority discusses plans for joint pharmaceutical plant in Zambia    Madbouly reviews legalisation of newly annexed lands to new cities, housing offerings    Egyptian Countryside Development chief discusses cooperation with Italian ambassador    CIB completes fifth securitisation issuance for B.TECH worth EGP 859.4m    Roche helps Egypt expand digital pathology and AI diagnostics    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt exports 175K tons of food in one week    Egypt foils terrorist plot, kills two militants linked to Hasm group    Egypt, Somalia discuss closer environmental cooperation    Egypt's Health Minister reviews upgrades at Gustave Roussy Hospital    Giza Pyramids' interior lighting updated with new LED system    Egypt's EHA, Huawei discuss enhanced digital health    Egypt expresses condolences to Iraq over fire tragedy    Foreign, housing ministers discuss Egypt's role in African development push    Korea Culture Week in Egypt to blend K-Pop with traditional arts    CIB finances Giza Pyramids Sound and Light Show redevelopment with EGP 963m loan    Egypt, Uruguay eager to expand trade across key sectors    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Government to propose cigarette and alcohol tax hike
Published in Daily News Egypt on 27 - 09 - 2006

Plan to finance LE 1 billion of LE 8 billion needed for universal healthcare coverage
CAIRO: The government plans to introduce a bill to the People s Assembly to raise cigarette and alcohol taxes by as much as 20 percent to help finance universal health insurance as promised by President Hosni Mubarak during last year s election campaign, several government sources revealed.
The state expects the proposed increase to bring in about LE 1 billion annually. The government estimates its current healthcare budget of LE 8 billion needs to be doubled in order to finance a universal healthcare system and raise the standards for services being offered now at government hospitals. Other possible tax increases may be implemented in vehicle licensing, road tolls and cement factories, a source in Prime Minister Ahmed Nazif s office says.
But any increase in cigarette taxes will have to be negotiated with state-owned Eastern Tobacco, which owns a monopoly on cigarette production, and debated on the floors of the People s Assembly and Shura Council, a process likely to take months, the source says.
Still, Mohamed Sorour, head of the technical office of the Egyptian Tax Authority (ETA), denies ETA has any plans to raise taxes on commodities or services. Any talk of increasing taxes contradicts ETA s efforts to reduce taxes and increase total revenues, he adds.
A Ministry of Finance official was not immediately available for comment.
Madiha Khattab, head of the National Democratic Party s (NDP) Health Committee and former Cairo University Dean of the Faculty of Medicine, says the plan has been under consideration by the party for years but has been often met with political opposition. The public, on the other hand, seems to support the idea, as in other countries where the plan has worked.
The costs of healthcare are very high, no doubt, if you want to provide a good service, says Khattab. The logic is to implement taxes on practices that are harmful to health. When a person smokes and they get sick down the line, they will have to rely on health insurance that they ve already paid for in taxes. Most people, I think, support that line of thinking.
Khattab says the party hopes to introduce legislation to Parliament by the end of the current round. The proposed bill asks for cigarette taxes to be increased from LE 0.10 to 10 percent of the price of local and imported cigarettes. She says the most important step is introduction to Parliament for debate, after which, the government will show flexibility in discussing possible means of implementation.
When people say cigarettes help people deal with everyday problems and they re a strategic commodity, it s nonsense, says Khattab. The fact is, cigarettes are harmful to your health. And We re not talking about a massive increase in price, just a symbolic one which will not be felt by the individual. But collectively, the increase can make a difference.
Khattab says the proposed 10 percent tax hike is expected to bring in LE 500 to LE 600 million annually. She acknowledges the number is far short of what is needed for quality universal healthcare coverage, but says if the initiative is successful it would be the latest in a series of achievements by the government to improve healthcare services.
Over the past few months, we ve succeeded in raising public awareness of the importance of quality healthcare and the sacrifices that must be made to achieve that goal, Khattab says. If we re successful, the return will be great because we will service people s health.
According to Ministry of Health figures, Egyptians now pay for 60 percent of their healthcare costs out of pocket, up from 50 percent in 1990.


Clic here to read the story from its source.