CAIRO: Egypt's Tax department has not presented a draft law or a proposal to increase taxes on tobacco, said Mamhoud Omar, an official in the Ministry of Finance. The statement comes shortly after the Minister of Health said the tax on tobacco would increase by 70 percent. Omar told Youm7 that the tax on tobacco has not increased since the recent amendments of Law No. 73 in 2010. The amendment raised taxes on tobacco and cement. Omar said the tax on tobacco in 2010 reached 3 billion EGP (U.S. $500 million) and expected that it will hit 10 billion EGP (U.S. $1.7 billion) this year. He said tax on one pack of cigarettes is about 1.25 EGP (U.S. $0.2) in addition to 40 percent of its selling price to the customer. Omar said the department conducted a study to increase tax imposed on the selling price before presenting a draft law, which has not happened yet. He said his department did not receive orders to re-conduct the study. Omar said the department should study the effects of such a decision on all types of customers, point out that tobacco companies raised the price of cigarettes recently. An increase in taxes will lead to another increase in prices. Officials of the Tax Department denied the declarations of the Minister of Health about increasing taxes on tobacco by 70 percent. The Minister of Health's statement was the second statement by a ministry regarding the supposed tax amendment. The first declaration was from the Minister of Integration and Social Justice, Goda Abdel-Khalek. He said there will be tax on the dealings in the bourse.
