Prices of cigarettes to go up after sales tax fixed at 10%

Tobacco companies have been undergoing a major shift as they try to lower their reliance on traditional cigarettes, seeking a future with alternative products as smoking demand wanes and countries tighten regulations.

PETALING JAYA: Sales and Service Tax (SST) for cigarettes has been gazetted at 10% as of Aug 29, and this will cause the prices of cigarette to increase.

British American Tobacco (M) Bhd (BAT) managing director Erik Stoel said the company is concerned about the impact that the 10% SST will have on the cigarette industry, given the high incidence of illegal cigarettes.