Boost to govt coffers

PETALING JAYA: The hike in the excise duty on tobacco products in Malaysia is expected to help alleviate pressure on the Government’s revenue amid the current weak oil price environment.

According to some economists, while taxes on tobacco products in general only account for less than 2% of total Government revenue, the excise duty hike of 42.9% could turn out to be one of the more effective avenues to boost its coffers. At least one economist expects the excise duty collection from the tobacco, cigarettes and cigars segment to increase by up to RM400mil next year due to the recently announced hike.