Cigarette prices to rise this month, says health minister


Yasmin Ramlan

A 10% sales tax has been imposed on cigarettes following implementation of the SST. – The Malaysian Insight file pic, October 16, 2018.

HIGHER cigarette prices will be announced at the end of this month, Health Minister Dr Dzulkefly Ahmad said today.

He said the price of tobacco products had to be raised whenever a tax is imposed, in this case referring to the sales and service tax (SST), as required under the Control of Tobacco Product Regulations 2004. 

“The implementation of the SST means the price of all tobacco products, including cigarettes, must be higher.

“For this reason, the price has to be raised,” the minister said at a press conference in the Parliament lobby.

A 10% sales tax had been imposed on cigarettes following implementation of the SST.

Tobacco manufacturers have, however, been waiting for the Health Ministry to provide guidance on a minimum level of increase for retail prices, resulting in confusion among companies and consumers.

The Edge reported earlier this month that prices were raised and then rolled back three weeks later in absence of guidance from the ministry.

Different companies also ended up fixing their prices at different levels, with some adjusting prices to pre-SST levels.

The ministry had also announced a ban on smoking nationwide at all eateries, including hawker stalls and coffee shops, beginning January 1. – October 16, 2018.
 


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