The Egyptian Tax Authority stated categorically that no
changes will occur in the VAT rates applied to cigarettes next November. The
recent interpretation of opening the price brackets as a tax increase is
entirely incorrect. The brackets only allow companies to set their product
prices and determine cigarette selling prices based on their own policies,
market competition, and relevant controls. This is in line with Law No. 177 of
2023 and its amendment under Law No. 157 of 2025, which permits an annual
increase of up to 12 percent in the selling price bracket for three years.
The authority urged all media outlets and social media users
to verify information before publishing or sharing any reports not officially
issued by the Egyptian Tax Authority. It emphasized that the authority is the
sole entity authorized to announce any tax or legislative changes. Any change
in tax rates requires a legislative amendment followed by approval from the
Cabinet and the House of Representatives.