26Mar
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Bursa Malaysia : Tobacco firms say industry in major crisis, call for excise freeze

KUALA LUMPUR:

  • Tobacco manufacturers are appealing to the Government to suspend any further excise duty increase to allow the market to stabilise.
  • In a statement on Friday, the Confederation of Malaysian Tobacco Manufacturers (CMTM) said the industry was facing a major crisis following the “drastic” excise increase of about 40% in November last year to 40 sen per stick.
  • “Legal industry volumes have been severely impacted, registering a significant decline by approximately 30% post the unprecedented excise increase. This would mean that excise revenue collection would be considerably lower than before November 2015,” it said.
  • “The industry is already at a tipping point and will not be able to withstand another excise increase this year. In the current operating environment where consumer sentiment is at a low, another round of excise increase will only produce a no-win situation for both the Government and the legitimate industry as consumers will switch to cheap unregulated illegal alternatives.”

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