Cigarette smuggling costs government LE160 million

A recent study showed that the Egyptian government lost about LE160 million during the first half of this year due to cigarette smuggling.

The study, which was conducted by an international Marlboro cigarette company, said that smuggled cigarettes amounted to 2.1 percent of the total cigarette market in Egypt for the first half of 2011, compared to 0.01 percent for the same period the year before.

The study has attributed the increase to new taxes that the government levied on cigarettes after the revolution.

According to the study, 330 million to 660 million cigarettes are smuggled in the world every year. The range constitutes up to 12.6 percent of total consumption, and causes world governments to lose up to US$60 billion annually in unpaid taxes.