JTI to raise cigarette prices post-SST

Smoke rises from a burning cigarette in Bordeaux, France, September 19, 2017. REUTERS/Regis Duvignau

KUALA LUMPUR: JT International Bhd, the maker of Mevius and Winston cigarette brands, said it will increase the selling prices of its products due to the higher sales tax effective Sep 1.

“The introduction of sales tax at 10% for tobacco products in Malaysia translates to a price increase for all our cigarettes 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 Ministry of Finance and the Ministry of Health.

O’Rourke said the company was disappointed that the government had not reverted to the 5% sales tax rate imposed from before GST introduction.

The upcoming tax-led price increase, he said, which will take effect following all necessary regulatory approvals.