Increasing the prices of tobacco is one of the most effective policies to reduce tobacco consumption. In this paper we use an Almost Ideal demand System to analyze the impact of the new taxes of cigarettes on Egyptian households’ consumption. Own price elasticities and cross price elasticities are estimated using the Egyptian Household Income, Expenditure and Consumption Survey (2009), to show the effects of the new taxes on cigarettes’ consumption as well as the substitution effects between the different tobacco products consumed by the households.