KUALA LUMPUR, Nov 3 — The prices of cigarette brands under British American Tobacco Malaysia (BAT Malaysia) will go up tomorrow, with one as high as RM18 per pack, following an over 40 per cent hike in excise duties by the federal government that the firm described as “unprecedented”.
The hike, effective today, was confirmed tonight in a statement by BAT Malaysia, according to a report on New Straits Times Online.
With the new prices, the Shuang Xi brand will now cost RM18 per pack; Lucky Strike Plain will cost RM17.50; Dunhill, Benson & Hedges and Kent brands will cost RM17; while those in the Peter Stuyvesant and Pall Mall range will cost RM15.50.
During its last revision on June 29, which was to take into account the Goods and Services Tax (GST), the prices of Dunhill, Kent and Benson & Hedges were set at RM13.80; Lucky Strike Plain at RM14.30; while Pall Mall and Peter Stuyvesant were set at RM12.30.
According to NST’s report tonight, BAT expressed “extreme disappointment and shock” at the hike in excise duties, which it reportedly described as “massive” and “unprecedented”.
“The tobacco industry has already been hit by a huge 12 per cent increase in cigarette excise just a year ago on November 1.
“This was followed by the implementation of the Goods and Services Tax at six per cent beginning April 1 this year,” BAT Malaysia managing director Stefano Clini was quoted saying in the news portal’s report.
Clini also reportedly said that the sudden hike, done at a time when the economy and consumer sentiments are weak, will likely contribute to the sale of contraband cigarettes.
“We cannot imagine the impact that this increase in excise will have on the industry.”
