The money generated by a hike in sales taxes on cigarettes -- the third increase in a year – will go towards the government’s healthcare budget, cabinet spokesperson Hossam Qawish said on Monday. 

Qawish also added in media statements that increasing the sales taxes on cigarettes complied with Egypt's commitment to the World Health Organisation's framework agreement on tobacco control through pricing and taxation.  

Egypt raised sales taxes on cigarettes on Saturday via a presidential decree published in the country's official Gazette.

The most expensive cigarettes, currently priced at 19.75 Egyptian pounds a pack but sold by most vendors for up to 21 pounds, will see their price per pack jump by at least 1.5 pounds.

Local and foreign brands with an official retail price between 10 pounds and 16 pounds will see a price hike of at least 1 pound per pack.

Brands officially sold for 10 pounds per pack or under, such as Egypt's popular Cleopatra brand, will see a 0.5 pound increase or more in retail price as their fixed sales tax component increases to 2.25 pounds, from 1.75 pounds.

Qawish stated the total revenue of sales taxes on cigarettes after the latest increase would be between 5 pounds and 5.5 billion pounds annually, most of which would  be allocated to improve health care and health insurance in the public budget. 

He added that Egypt still had some of the lowest rates of sales taxes on cigarettes and tobacco in the world.