KUALA LUMPUR, Nov 24 — The proposal to impose excise duty on cigarettes in duty-free areas may cause retailers to lose up to between 30 per cent and 40 per cent of their annual revenue, Langkawi Chinese Chamber of Commerce said.

Its president, Lee Han Eng, said imposing tax on popular items in duty-free areas will lead to a fall in demand and some retailers may lose purchasers while suffering from a drop in overall customer traffic.

"This would be especially so for retailers who specialise in offering a limited range of product items to cater to a predominantly tourist market,” he said in a statement today.

His comments came amid calls for the government to reconsider imposing excise tax on cigarettes in all duty-free areas.

This new tax initiative was announced during the tabling of Budget 2021 in Parliament recently. — Bernama