Eastern Company to cap cigarette price at EGP 45

Aman told MBC Masr that the company had reached the upper limit of the current tax bracket, and maintaining previous prices was causing losses. Rising raw material and transportation costs have significantly increased production expenses.

Approximately 90–95 percent of cigarette components, including tobacco, paper, and agricultural gum, are imported and priced in foreign currency, which adds financial pressure amid currency fluctuations and global price hikes.

Before the tax changes, cigarettes were officially retailed at EGP 38 per pack, with nearly 60–65 percent of the price collected in taxes. The new rules allow prices up to EGP 48 per pack, but Aman confirmed Eastern Company will keep prices below that ceiling, not exceeding EGP 45.

Sales were paused on Sunday and Monday to adjust pricing, with the new rates taking effect on Tuesday. Aman said the company is still assessing the full impact of the updated tax regulations and may provide further updates soon.

Shisha tobacco (Muʽassel) will not be affected by the new taxes. “There has been no increase in taxes on Muʽassel, and price hikes are unlikely during this period,” Aman said.

Cigarettes remain Eastern Company’s largest product by consumption and contribution to the national budget.

Separately, Ibrahim Embaby, head of the tobacco division at the Federation of Egyptian Industries, stated that the revised price brackets stand at EGP 48 for the lowest tier and EGP 69 for the mid-tier.

Earlier on Sunday, the House of Representatives approved a government-drafted law amending the Value Added Tax (VAT) on cigarettes, which will increase the minimum and maximum retail prices by 12 percent annually for three years starting next November.