KUALA LUMPUR, Sept 30 — British American Tobacco (BAT) Malaysia has confirmed a price increase of at least RM1.50 for its range of cigarettes today that it blamed on a “drastic” and “excessive” increase in tobacco excise recently.
The cigarette manufacturer said retail prices of all its brands will go up by RM1.50 today, except for Pall Mall Plain, Lucky Strike Plain, and Rothman’s International 100, which will increase by RM1.60.
BAT explained that the price hike is in direct response to the recent 14 per cent hike of tobacco excise by Putrajaya.
“All of BAT’s cigarette brands will be increased ... because of a drastic increase in excise. We foresee an increase of loss against illegal cigarettes,” Maxine Lim, BAT’s corporate affairs manager told The Malay Mail Online over the phone here.
Lim explained that BAT has never opposed any increase of excise, but would have preferred it to be increased gradually and moderately.
At the time of writing, Philip Morris Malaysia and RJ Reynolds Malaysia have yet to respond to enquiries.
“This announcement is indeed shocking and disappointing. The industry is not opposed to excise increases and has always advocated for a moderate and gradual approach, precisely to avoid the current situation of a sudden and huge excise hit after two years of no excise increases,” BAT managing director Stefano Clini told the media in a separate statement.
“Such a move will exacerbate the already high levels of illegal cigarettes in Malaysia and dampen all efforts that have been taken thus far to address this national scourge,” he said, adding that about RM2 billion in revenue is lost annually to illegal cigarettes.
BAT’s brands include Dunhill, Kent and Peter Stuyvesant, among others.
In June, the company had announced a 3 per cent hike in price citing rising operating costs.
