A high-level roundtable discussion featured extensive discussions on the findings of the study "Analysis of the Egyptian Cigarette Market: Informal Trade and the Impact of Tax Policies." The study addressed several economic, health, and regulatory aspects of the tobacco market in Egypt, emphasizing the importance of supporting the efficiency of the formal market and strengthening regulatory and monitoring mechanisms. The study was prepared by an Egyptian research team led by Dr. Khaled Hanafy, with contributions from Dr. Sarah El-Gazzar, Dr. Mahmoud Barakat, Dr. Shehab Saleh, and Dr. Ahmed Eid, in collaboration with the Center for Social Policy and Development (SPDC) and the Johns Hopkins Bloomberg School of Public Health. The study provides an economic and analytical assessment of the Egyptian cigarette market, focusing on informal activities, retail price dynamics, and market trading patterns, in addition to the economic and health aspects related to the tobacco sector. The study indicated that a portion of cigarette trade occurs through informal channels, representing approximately 15.58% of the total market, which underscores the importance of supporting regulatory and tracking mechanisms to enhance the efficiency of the formal market. The study also demonstrated that increasing the volume of trade within formal channels supports market efficiency and contributes to improved compliance levels across the various stages of the distribution and retail chain. Read also | Artificial Intelligence on the Table of International and Economic Policies at the National Center Conference. The study observed changes in pricing behavior within the market following some regulatory and tax amendments, reflecting the market's interaction with various variables and highlighting the importance of continuously developing monitoring tools and market regulation mechanisms. Dr. Khaled Hanafi, Secretary-General of the Union of Arab Chambers and head of the research team for the study, emphasized that the cigarette market is not only affected by price factors, but also by consumer behavior and cultural factors. He explained that "consumer preferences" drive some consumers to seek alternatives and different products when prices or regulatory policies change. Hanafi added that dealing with the informal market requires an integrated system that includes developing tracking and awareness tools and updating legislation, which supports market stability and maintains a balance between economic and health considerations. The need to update legislation regulating electronic cigarettes and regulate their use in public places. Dr. Sarah El-Gazzar, Senior Advisor to the Union of Arab Chambers and Dean of the College of International Transport and Logistics at the Arab Academy for Science, Technology and Maritime Transport, revealed that the study reflects the importance of supporting official channels and enhancing the application of technical, health, and regulatory standards within the market, which contributes to increasing the efficiency of trade and improving the competitive environment. The study recommended updating legislation regulating e-cigarettes and modern tobacco products, including regulating their use in public places, especially given their noticeable increase among younger age groups. Dr. Ashraf El-Zayat, Head of the Inspection Sector and Head of the Large Taxpayers Center at the Egyptian Tax Authority, stated that the cigarette distribution system in the local market involves multiple levels of agents and distributors, making the tracking process more complex. He explained that the market has experienced price fluctuations at times due to supply and demand changes and certain market practices, emphasizing that developing tracking tools contributes to market stability. El-Zayat pointed out that taxes are a key component of the cigarette pricing structure, reflecting the importance of this sector within the economic system. Dr. Gaber Khalil, Secretary-General of the Board of Directors of the Egyptian Tax Authority Employees Syndicate in Alexandria, added that recent economic changes have led some consumers to opt for cheaper products, underscoring the importance of supporting regulation within markets and retail outlets. Khalil emphasized the importance of supporting health awareness efforts alongside developing regulatory mechanisms within the market. He stressed the need to intensify health awareness campaigns about the dangers of e-cigarettes, focusing on the 12-18 age group, given its significant growth in the smoking population, whether traditional or electronic, a phenomenon that warrants further study and attention. Promoting health awareness and supporting regulatory policies contribute to protecting public health. In the same vein, Dr. Wael Safwat, Consultant of Internal Medicine and Health Promotion and Head of the Health of Egypt Foundation, affirmed that the study realistically reflects the current market landscape and contributes to discussions related to developing regulatory and health policies for the tobacco sector. This includes enhancing market monitoring efficiency, supporting the quality of products distributed through official channels, and allocating a portion of revenues to support awareness, control, and treatment programs, in addition to developing health services. He added that these recommendations align with several previous international studies and reports related to the economic and health impacts of smoking, including studies issued by the World Health Organization that addressed the economic feasibility of investing in tobacco control programs. For his part, Dr. Ahmed Idris, a member of the Senate Health Committee, affirmed that combating smoking is directly linked to supporting the comprehensive health insurance system and improving citizens' quality of life. He explained that health awareness is a fundamental element in reducing smoking rates, especially among young people, in addition to the importance of continuing scientific studies to monitor market developments. Senator Suzy Samir, also a member of the Senate Health Committee, praised the study's findings, calling for increased enforcement of regulations within markets and distribution outlets, along with expanding health awareness campaigns through social media to address the dangers of smoking. The discussions concluded that enhancing the efficiency of the tobacco market requires a comprehensive strategy that includes updating legislation, developing tracking systems, strengthening compliance, and raising public awareness of the health and economic risks associated with smoking.
