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2016-03-17

MNE in Gaza to Fix Cigarette Prices after their Unprecedented Increase

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Translated by Tamara Barakat

The undersecretary of the Ministry of National Economy in Gaza, Imad Al-Baz, said that the Ministry has been studying the increase in cigarette prices and possible ways to put an end to this increase. He emphasized that the Ministry is going to fix cigarette prices soon.

In an exclusive statement to “Al-Ra’i”, Al-Baz said that the most important factor behind the increase in cigarette prices was the difficulty in transporting them from Egypt into Gaza, as “cigarettes often get burned and destroyed in Sinai.” He explained that the Ministry is not responsible for the increase in prices.

The Customs Security in Gaza decided to increase the tax imposed on each pack of cigarettes to 5 shekels starting from the onset of 2016, which also contributed to increasing the price of cigarettes.

Cigarette prices increased unprecedentedly by around 400% after the end of the last Israeli aggression on the Gaza Strip, and after the Egyptian army destroyed the tunnels in Gaza.

A cigarette pack currently costs around 18 – 40 shekels depending on its type. At the same time, international organizations estimate that the unemployment rate in the Strip is around 45%.

The Gaza Strip’s consumption of cigarettes is estimated at 7 million packs per month that are imported either through the official crossings or through the underground tunnels. The custom duty imposed on these packs amounts to 35 million shekels (9 million dollars) per year.