Tobacco Product Prices to Increase by 12% in 2025

Tobacco prices will rise in April 2025 as per the VAT Law passed in November 2023, which stipulates a 12% annual increase.

The Eastern Tobacco Company has recently announced that its local cigarette product prices have increased by 22 piastres, which follows Law No. 2 of 2018, which stipulates an increase of up to 25 piastres on tobacco products every three years until it has reached an EGP 1.5 total increase. This increase is mandated by the Health Insurance Law.

Cigarette prices have been negatively impacted by recent geopolitical tensions which have affected the movement of trade ships in the Red Sea, and subsequently the delivery of raw materials. This has also significantly increased the smuggled cigarette market, with the market share of smuggled cigarettes estimated to have risen to 8% of all cigarettes sold.

The annual consumption of cigarettes in Egypt is currently estimated at 85 billion cigarettes.