British American Tobacco Malaysia - Massive And Unprecedented Cigarette Excise Increase

Petaling Jaya, 4th November 2015 – British American Tobacco Malaysia (BAT Malaysia) expressed extreme disappointment and shock at the unprecedented massive increase in cigarette excise of more than 40% by the Government effective 3rd November 2015.

“The tobacco industry has already been hit by a huge 12% increase in cigarette excise just a year ago on 1st November 2014. This was followed by the implementation of the Goods and Services Tax (GST) at 6% beginning 1st April this year” said Stefano Clini, Managing Director of BAT Malaysia.

“The legal tobacco market has declined by 10% 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. We cannot imagine the impact that this more than 40% increase in excise will have on the industry” Clini added.

Consequently, British American Tobacco had to increase its cigarette prices taking into consideration the sum mandated by the excise increase and its impact on GST and inflationary cost pressures.

The new cigarette prices, effective Wednesday, 4th November 2015, are as follows:

DUNHILL range - RM 17.00

KENT range - RM 17.00

BENSON & HEDGES - RM 17.00

PETER STUYVESANT range - RM 15.50

PALL MALL range - RM 15.50

LUCKY STRIKE PLAIN -  RM 17.50

SHUANG XI range - RM18.00