The Egyptian government has been gradually increasing taxes on tobacco since 2010. Most recently, in July 2011, the Egyptian government raised the national tobacco tax on the retail price of all cigarette brands by an additional 10%.

This marked the second successive rise in taxation on cigarettes, following an earlier rise of 40% in July 2010, which also imposed a 100% rise on Shisha (water pipe) and smokeless tobacco products. According to the World Health Organization (WHO), tobacco taxation is one of the most effective ways to reduce tobacco consumption.

Over a two-year period, the Ministry of Health, the Ministry of Finance and WHO have been collaborating on a project under the Bloomberg Initiative to Reduce Tobacco Use managed by The Union. Throughout this period, The Union has provided support to build political and public support for the tax rise.

 An economic report released in March 2011 that detailed the viability of the tax increase in Egypt found that 170,000 deaths were attributed to smoking-related diseases in 2004.  The study also emphasised the benefit of a tax rise in boosting government revenue. The greatest economic value that the tax increase would achieve is the reduction in treating tobacco-related diseases, which amounts to approximately more than US $650 million annually.[1]

 Currently, nearly 20% of the adult population in Egypt uses some form of tobacco product. Shisha, in particular, has been growing in popularity most notably among young people and women. The tax rise will decrease tobacco consumption in general, but will provide a disincentive to starting or continuing smoking, especially among more vulnerable groups, such as the young and the poor. 

[1] Euromnoitor International, Egypt: Country Sector Briefings. London: Euromonitor International 2005.