A 100 per cent increase in duty on tobacco products in the GCC could fuel growth in illicit trade, beyond the control of police and customs authorities, as a consequence of an overnight rise in the cost of cigarettes, says a report.
Dubai plans to double the levy it charges on tobacco to 200 per cent by August, Khaleej Times reported on Thursday, citing the head of the emirate's health authority.
"We will impose the tax on tobacco by August in co-operation with the Du
Illicit trading in cigarettes is costing the Egyptian government approximately EGP4 billion ($663 million) annually, or three per cent of the current budget deficit, said a report.
More than 100 low-cost illicit brands, adhering to no loca
The Gulf Cooperation Council (GCC) is planning to introduce up to 100 percent tax on luxury goods likely to include cigarettes, a GCC official said.
Abdulaziz al-Uwaisheg, the GCC's head of studies and integration, was quoted by Al-Watan n
Around six million people in Saudi Arabia spend SR5 billion ($1.3 billion) annually on cigarettes, smoking around 15 billion cigarettes each year.
According to recent WHO statistics, as many as 22 per cent of Saudis smoke cigarettes with