JTI to raise cigarette prices post-SST
KUALA LUMPUR: JT International Bhd (JTI), the maker of Mevius and Winston cigarette brands, says it will increase the selling prices of its products due to the higher sales tax effective Sept 1.
“The introduction of sales tax at 10% for tobacco products in Malaysia translates to a price increase for all our cigarette brands, taking into account the incremental rate differential from the previous goods and services tax (GST) rates levied on cigarettes,” managing director Cormac O’Rourke said in a statement.
Cigarette prices had not been revised post-June 2018 zero-rating of GST following directives from the Finance Ministry and Health Ministry.
O’Rourke said JTI was disappointed that the government had not reverted to the 5% sales tax imposed before the GST introduction.
The upcoming tax-led price increase, he said, would take effect following all necessary regulatory approvals.