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Egypt Fights Smoking with New Tobacco Tax
July 9, 2010
Egypt is implementing a new tax on tobacco products, raising cigarette prices by as much as 40 percent in the heavy smoking nation.
In conjunction with Alexandria’s recent ban on smoking in government buildings and public spaces, the new tax hopes to curb smoking in the Arab world's most populous nation and help fund health and social service programs.
The increase, which took effect July 1, was approved in late May. The tax raises the price of cigarettes by as much as 40 percent, while a 100 percent duty is added to tobacco used in shisha, or water pipes.
Health Ministry officials say the new tax is expected to generate about $345 million in additional revenue.
World Lung Foundation regional spokesman Mohamed Ghamrawy says, “International experience has proven that when you increase (cigarette prices) by about 10 percent, it may help decrease the number of smokers by 7 percent.”
“We hope that it will help a lot of smokers start to quit.”
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