KUALA LUMPUR (Dow Jones)--Malaysia this week raised the excise duty on tobacco by one sen per stick, equivalent to 5.6%, in a surprise move, The Edge financial newspaper reported Saturday, quoting unnamed industry sources.
Although there were no official announcements from the government, the weekly said the country's three largest tobacco players - British American Tobacco (M) Bhd. (4162.KU), JT International Bhd. (2615.KU) and Philip Morris (M) Bhd. - along with some smaller outfits were informed of the rise on Thursday.
The tobacco industry had been bracing for a rise in excise duties when Malaysia announces it budget for 2010 on Oct. 23 as the government seeks more revenue to reduce its fiscal deficit, The Edge said.
An industry source said another increase in the excise duty could be announced in the budget. "We are fully expecting to be hit by a double whammy this year," the source said.
There has yet to be any official announcement on the duty increase from the Ministry of Finance or the Customs Department.
Dow Jones Newswires
October 03, 2009 05:52 ET (09:52 GMT)
Copyright (c) 2009 Dow Jones & Company, Inc.
SOLUTION: BUY YOUR SMOKES IN INDONESIA..... (JUST A SUGGESTION NOT AN OPINION OF THIS BLOG)
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