BAT hopes tax rise will be moderate

FACED with the prospect of slowing sales and a further hike in tobacco tax, British American Tobacco Malaysia Bhd (BAT) and the industry as a whole hope the increase in tax will be moderate as high taxes would further depress the legitimate cigarette market. 

Director of corporate and regulatory affairs James Blakelock, in an e-mail response to StarBiz, said the company hoped the Budget 2006 would recommend a “moderate increase'' in tobacco tax. While this will raise Government revenue, it will not further stimulate illicit cigarette trade.