Malaysia: JTI Calls for Moderate Excise Tax Hike

Source from:  The Sun Daily  09/13/2012

JT International Bhd (JTI) hopes the government will ensure that any possible excise tax increase on cigarettes in Budget 2013 will not worsen the illegal cigarette situation in the country. "There has been speculation, as does happen during the period closer to the budget announcement each year, of a cigarette excise rate increase. We hope the government will take cognisance of the fact that any drastic sudden hefty increase in cigarette taxes will inevitably lead to a corresponding large increase in illegal cigarette trade," JTI Malaysia managing director Shigeyuki Nakano said in a statement today. "We are not against any cigarette excise increase. But we propose that any increase should take into consideration the opportunity now to address the illegal cigarette situation further. Therefore we hope any increase would be moderate," he added. JTI, which makes cigarette brands like Mild Seven, Winston, Salem and Camel in Malaysia, said the sale of illegal cigarettes that are sold below the government-mandated minimum cigarette price continues to remain a major concern. According to the latest illicit cigarettes study commissioned by the Confederation of Malaysian Tobacco Manufacturers, the illegal cigarettes level in Malaysia remains high at 34.7% during the March-May 2012 period. Enditem