The Cigarette Trade Association in Cairo and Giza has said that the state treasury will get LE31 billion instead of LE22.5 billion in taxes this fiscal year due to the new taxes imposed on sales, while factories will reduce production.
In a statement on Monday, Osama Salama, chief of the association, said cigarette factories have agreed to reduce the targeted rate of production for the new fiscal year, which starts in July, from 82.2 billion to 63.8 billion cigarettes. It has also decided to reduce the production of molasses from 30,000 to 24,000 tons.
In February, a presidential decree ordered the raise in sales tax on both local and imported cigarettes in order to address the budget deficit.
Edited translation from Al-Masry Al-Youm
