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Tag: VAT

  • PMI Raises Prices in Egypt After VAT Change

    Days after Egypt amended its tobacco VAT law, Philip Morris Egypt released a new price list for its cigarettes and heated tobacco products. Yesterday (July 1), Egypt’s largest tobacco producer, Eastern Company, of which PMI owns a 14.7% indirect stake, made a similar announcement.

    PM Egypt’s managing director Ali Nafzat Kerman reaffirmed the company’s commitment to meeting adult smokers’ needs while advancing toward a smoke-free future. Philip Morris urged retailers to adhere to the new pricing. The new tax laws cap the lowest-tier cigarettes at EGP 48 ($0.96) and the mid-tier at EGP 69 ($1.38), with VAT taxes increasing 12% in each of the next three years.

    The new official prices for PMI in Egypt are EGP 69 for HEETS, EGP 76 ($1.52) for L&M and TEREA, EGP 79 ($1.58) for Marlboro Crafted, EGP 80 ($1.60) for TEREA Capsules, EGP 97 ($1.94) for Marlboro, and EGP 105 ($2.10) for Merit.

  • Egypt Increases Cigarette Price Thresholds

    Egypt Increases Cigarette Price Thresholds

    The Egyptian House of Representatives approved a government-backed amendment to the Value Added Tax Law, aimed at bolstering state revenues and advancing tax and social equity. A key provision of the amendment involves a structured increase of 12% annually to the minimum and maximum retail price thresholds for cigarettes, beginning November 5, 2025, and running through 2028.

    New cigarette price thresholds for 2025 for local cigarettes priced below EGP 38.88 ($0.78) will increase to EGP 48 ($0.96); cigarettes priced between EGP 38.88 and EGP 56.44 ($1.13) will increase to EGP 48 to EGP 69 ($1.38); and imported brands priced up to EGP 56.44 will increase to EGP 69.

  • World Bank Urges Laos to Increase Taxes

    World Bank Urges Laos to Increase Taxes

    Image: Skórzewiak

    The World Bank has urged Laos to raise its value-added tax rate and increase taxes on cigarettes and alcohol to help address high inflation and currency depreciation, according to Radio Free Asia.

    Alex Kremer, the World Bank’s representative in Laos, said in a report last month that the government should spend more money on healthcare and education to set a foundation for future development.

    Laos’ economy has struggled with rapidly rising prices, low foreign investment and public debt that could increase to 125 percent of GDP in 2024. The country’s debt reached $18.7 billion by the end of 2022. Over half the debt is owed to China.

    Kremer said the debt has destabilized the country’s macroeconomy and slowed economic growth.