Cairo – Mubasher: Eastern Company, commonly known as Eastern Tobacco, on Thursday announced raising the prices of its Cleopatra brand by around EGP 0.75.

We have increased the prices of our Cleopatra box (red and blue) to EGP 12.75 from EGP 12 starting Wednesday, the company said in a filing to the Egyptian Exchange (EGX).

The price increase was done in accordance with the value-added tax (VAT) regulations, Eastern Tobacco stated.

Last month, the company raised its prices for Cleopatra cigarettes by around EGP 0.50 and EGP 0.75, after another price hike in January this year of EGP 0.25 to EGP 1.5.

Recently implemented in Egypt, the VAT involves imposing a tax on goods and services at various stages of production. Accordingly, the value of an item increases at each stage of its production or distribution.

Eastern Company also said it was targeting a 3.7% rise in its profits in its estimated budget for the fiscal year 2017/2018 and achieving EGP 1.44 billion in net profits.

The Egyptian tobacco company last reported a 4.8% growth in its profits for the second quarter of its fiscal year to EGP 463.1 million.

The cigarette firm’s stock last traded at EGP 202, rising 0.25% by 11:42am Cairo time.