Egyptian Smokers stocking up before tobacco tax hike
By Ashraf Sadek - The Egyptian Gazette
Wednesday, June 1, 2011 03:34:17 PM
CAIRO - Fuming smokers are stockpiling cigarettes ahead of a record tobacco tax rise that the Government has set to go into effect shortly, Cairo kiosk owners said on Wednesday.
"Retailers are making the most of the buying frenzy in the build up to what will be a more than 70 per cent tax rise for some brands as the government has raised cigarette tax ," Hassan el-Sayyed said. An acute shortage of Cleopatra cigarettes has compelled many frustrated smokers to buy different brands, which they never liked before.
"Retailers are making the most of the buying frenzy in the build up to what will be a more than 10 per cent tax rise for some brands as the government has raised cigarette tax ," Hassan el-Sayyed said.
An acute shortage of Cleopatra cigarettes has compelled many frustrated smokers to buy different brands, which they never liked before.
El-Sayyed said that smokers have started stocking upon packs of cigarettes in Cairo, a city that is considered a smokers ' haven because it allows smoking in public places except for the cinema houses and the metro stations.
"There is a rush for buying and stocking up cigarettes that started when the Government announced its plan to raise tobacco taxes by 10 per cent on Wednesday," Om Saber, another kiosk owner in the eastern Cairo district of Hadayek el-Kobba, said.
The rush began also after the Government increased the prices of local brands by 50 piasters last week, Om Saber said, adding that she could not expand her cigarette stock because the Eastern Tobacco Company, which dominates the country's cigarette market , stopped providing her shop with its daily ratio of the Cleopatra brand since Monday.
The hike has also led to an increase in the sales of water-pipe tobacco, popularly known as meaassil, because its price has remained the same, Om Saber said.
"People can't afford such prices," says Haj Amin as a small crowd gathered around him, expressing outrage over the tax increase and lashing out at the Government.
Ahmed el-Nadi, a customer, warned that there would be an " explosion " if the Government continued to raise prices .
At a cafe house, which have become a central feature of Hadek el-Kobba, the shisha-loving customers have joined forces in criticising the new rise, saying that the price of one bowl of apple or honey-scented tobacco could be doubled too.
"The Government should solve the problems of electricity, drinking water and unemployment . This new tax on tobacco products should be last on its list," complained Nadia, a 45-year-housewife, who said she smokes at least three bowls of shisha, the famous Egyptian smoking device, each night.
"The shisha smokers can not afford the new prices," she said , adding that she sees smoking as relief from the daily grind either at home, or in the street.
The Government has authorised the company, to raise the prices of cigarettes by around 50, or 75 piasters per pack of 20.
The price of popular brand Cleopatra Box his risen from LE5 to LE5.50 per pack since last week. With the new 10 per cent increase in tobacco tax, the Government hopes to eventually raise the prices to reach the same prices of cigarettes in Europe and North America.
The move was proposed by Health Minister Dr Ashraf Hatem to discourage smoking specially among the nation's youth.
Ahmed Sobbh, a mass communication student attending a private university in the 6th of October City, complained that he had paid LE10 for a pact of locally manufactured foreign brand after the increase.
"The increase now, or in the future will not stop me from smoking specially during the days of the final exams that make each student tense," Ahmed said, adding that the hike is also encouraging cigarette buying instead of dissuading young smokers.
Maha, another female student who smokes a pack a day , said that she had stashed 3 cartons after the price hike, also costing around LE225. She said she wouldn't stop smoking even if the price rose to LE7.50 a pack.
"I will expand my stock in advance to last during the final examinations and keep it all in the refrigerator," she said, adding that the examination season makes her nervous and under pressure all day long .
But the price hike has also helping some smokers kick the habit. Journalism professor Laila M said that she would give up after the price hike.
"The margin of price increase is larger this time. I have decided to quit because of its impact on my pocket," she said, while dragging a puff from her cigarette.
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