In a statement British American Tobacco (BAT) Malaysia said it had raised pack prices after “taking into consideration the sum mandated by the excise increase and its impact on GST (Goods and Services Tax) and inflationary cost pressures.”
The cigarette maker, which sells brands including Dunhill, Lucky Strike and Benson & Hedges said that pack price of its brands will now range from MYR 15.50 (EUR 3.30) to MYR 18.
The tax hike follows the government’s Nov 2014 12 per cent increase in excise tax for tobacco products, and a rise in Goods and Service Tax to 6 per cent on 1 April this year
“The legal tobacco market has declined by 10 per cent on a September year-to-date basis. This extreme hike in cigarette excise done against the backdrop of both weakened economy and consumer sentiments will definitely fuel further an already high level of illegal cigarettes, where 1 in 3 packs is illegal,” BAT Malaysia Managing Director Stefano Clini said in a statement.