PETALING JAYA, March 3 — The revision of the alcohol tax will be across the board, not just on beer and stout as initially believed.

Following amendments made to the Excise Act 1976 gazetted by the Finance Ministry, a new tax structure on alcohol took effect on Tuesday and manufacturers have revised their prices.

An industry source told Malay Mail the new price list released for East Malaysia recommended the retail price for Guinness be increased to RM191.63 per carton of 24 cans from RM181.63 previously.

Other popular brands like Tiger went from RM176.07 per carton to RM181.99, Heineken from RM185.50 to RM190.66 while Anchor dropped from RM141.35 to RM139.61.

Price differences on the peninsula were similar, with a can of Guinness going from RM8.00 to RM8.42, Tiger from RM6.90 to RM7.20 and Heineken from RM8.70 to RM8.90. 

Alcohol Consumer Rights Group founder Deepak Gill said while the price hike was not as dramatic as feared, the timing of the move was poor.

“While it does not seem to be too bad, we would have preferred the tax rate reduced or at least maintained,” he said.

“People are already reeling from the soaring cost of living and having to fork out more for a cold beer or stout is certainly going to do anything but sober tempers.”

Deepak also said the move seemed contrary to drawing in more tourists as those visiting Malaysia would have to spend more, especially at retail outlets.

“I do not anticipate the price of beer to spike dramatically at bars, pubs and other drinking establishments, but there will always be profiteers who will take advantage of the situation,” he said.

“Individual consumers down the supply chain, who are not able to acquire the beverages in bulk, are more likely to pay much more when buying for personal consumption.”

There was also a backlash on social media, with netizens posting angry comments condemning the tax hike.

One going on Facebook by the name Sum Siew called the hike unfair, unethical and said it was an attempt to deliberately keep prices of drinks up to maximise profits.

Others claimed the higher prices would feed an underground industry with consumers turning to cheaper, fake or smuggled alternatives just the way smokers switched to contraband cigarettes.

“Everything is going up except our salaries. People are going to be forced to turn to smugglers and this will feed the black market industries,” posted another user under the name Angin.

A Guinness Anchor Berhad spokesman confirmed the increase and said the company made price adjustments but cautioned the move would have negative consequences.

“Malaysia’s beer excise duty is the second highest in Asia and third highest in the world. The state of the economy is having a significant impact on businesses and consumers,” he said.

“The latest increase in excise duty will result in more challenges for our industry. We are also concerned the demand for illicit and unregulated alcohol products may increase.”