Cairo – Mubasher: Eastern Co on Thursday revealed that the increase in prices in most of its cigarette lines will raise revenues of its value-added tax (VAT) by around EGP 500 million a month.

In addition, the price hikes will increase the company’s revenues by around EGP 50 million per month, according to a statement to the Egyptian Exchange (EGX).

Data compiled by Mubasher indicated that revenues from the VAT will increase by as much as EGP 6 billion annually, while Eastern Co.’s revenues will reach around EGP 600m per annum.

Earlier on Thursday, Eastern Co. announced the new prices of its products after applying the VAT, indicating that its cigarette prices have increased by 12.5% to 25%.

VAT implementation across Egypt began on 10 September 2016, after Egyptian President AbdelFattah El-Sisi issued Law no. 67 of 2016 for the VAT.

Eastern Co. last reported a profit of EGP 1.04 billion in the three months ended September 2017, a rise from EGP 427.3 million in the same period of 2016, while its sales surged by 65.67% year-on-year to EGP 3.17 billion in the period from July to September compared to EGP 1.9 billion.