JTI to raise ci­garette prices post-SST

The Star Malaysia - StarBiz - - News -

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.

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