Egypt Widens VAT Base in IMF-Backed Quest for New Revenue

Egypt amended value-added taxes on cigarettes and alcoholic drinks while introducing a levy on crude oil, the latest bid to boost revenue as part of International Monetary Fund-backed reforms.

Under the revisions posted Thursday in the government gazette, beverages will see prices rise depending on their alcohol content, with all types also subject to a 15% hike for each of the next three years. The increase will scale back to 12% thereafter.

Cigarettes, meanwhile, will face a rise of between 5 and 8 Egyptian pounds per pack depending on type and whether they’re locally or foreign made. All kinds ...