Following the recent toll rate hikes and rail fare hikes, British American Tobacco Malaysia (BAT Malaysia) announced that cigarette prices will go up today.
BAT said in a statement on Tuesday (3rd November) that they implement the price hike after an increase in cigarette excise of more than 40% and its impact on GST and inflationary cost pressures.
The cigarette brands under BAT Malaysia that will be affected by the cigarette excise are Dunhill, Benson and Hedges, Pall Mall, Kent, Peter Stuyvesent, and Lucky Strike .
Effective today (4th November), Shuang Xi is priced at RM18 per pack while Lucky Strike Plain will cost RM17.50. The Dunhill range had previously been priced at RM13.80 per pack, but its range will cost RM17 per pack now. Benson and Hedges and Kent are also priced at RM17 per pack while Pall Mall and Peter Stuyvesant will cost RM15.50.
In a statement, BAT Malaysia expressed “extreme disappointment and shock”, further describing the increase in cigarette excise was “unprecedented”.
BAT Malaysia managing director Stefano Clini said:
The tobacco industry has already been hit by a huge 12% increase in cigarette excise just a year ago on 1st November 2014.
He stated that the hike was then “followed by the implementation of the Goods and Services Tax (GST) at 6% beginning 1st April this year”.
“We cannot imagine the impact that this more than 40% increase in excise will have on the industry,” said Clini, adding that the price hike will result in more illegal cigarettes flooding the market.
What do you think of the price hikes? Sound off your thoughts in the comments box below.
Source: The Star Online.
