PETALING JAYA, Nov 4 – British American Tobacco Malaysia (BAT Malaysia) expressed extreme disappointment and shock at the unprecedented massive increase in cigarette excise of more than 40% by the Government effective on Nov 3, 2015. The Managing Director of BAT Malaysia Stefano Clini said that the tobacco industry has already hit by a huge 12% increase in cigarette excise just a year ago on Nov 1, 2014.
He said this was followed by the implementation of the Good and Services Tax (GST) at 6% beginning on April 1, 2015. He said the legal tobacco market has declined by 10% on q September year-to-date basis. He said this extreme hike in cigetterre excise done against the backdrop of both weakened economy and consumer sentiments will definitely fuel further an already high level of illegal cigarettes, where 1 in 3 packs is illegal.
Clini added that they cannot imagine the impact that this more than 40% increase in excise will have on the industry. Consequently, British American Tobacco had increase its cigarette prices taking into consideration the sum mandated by the excise increase and its impact on GST and inflationary cost pressure. The new cigarette prices that will be effective in Nov 4, 2015 (Wednesday) are as bellow:
- DUNHILL range – RM 17.00
- BENSON & HEDGES – RM 17.00
- PALL MALL range – RM 15.50
- SHUANG XI range – RM 18.00
- KENT range – RM 17.00
- PETER STUYVESANT range – RM 15.50
- LUCKY STRIKE PLAIN – RM 17.50
