The government plans to impose a floor price for all cigarettes as part of efforts to decrease the number of youths smoking.

Health minister Datuk Liow Tiong Lai told reporters on 29 October that all quarters including the industry and the cabinet had agreed to the introduction of the minimum price in a meetin on 17 September. The ministry is currently in the final stage of drafting the Control of Tobacco Products (Sale of Tobacco Products) Regulations 2008 to implement it.
"According to a study by the World Bank, taxes on tobacco and the price of cigarettes in the market are the most effective strategy in controlling the use of tobacco especially among the younger generation," he said.
Liow said the minimum price would be determined by taking into account all taxes imposed by the government and the profit made by the cigarette industry. It would be adjusted each time there is a change in taxes, he added.
Under the regulations, retailers found guilty of selling cigarettes below the minimum price could be fined up to IDR 10,000 (EUR 2146) or sentenced to jail not exceeding two years or both, he said. (sra)