Egypt has raised tariffs by 40-60% on some "luxury imports", according to Presidential decree published on Thursday in the official gazette. The tariff hike, which is the second this year, includes some fruit, cosmetics, stationary and electronic gadgets. Last January, the same items were subject to a 30-40% tariff increase. We see the measure as further attempts by the government to discourage “non-essential” imports. We expect imports to contract in current FY2016/17, with a sharp weakening of the EGP post its float on top of higher tariffs weigh on demand. (Al Ahram Online, Mohamed Abu Basha)