Huge 16% excise increase likely to spur further growth of illicit cigarettes trade - New cigarette prices following excise increase

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Petaling Jaya, 4th October 2010 – British American Tobacco Malaysia expressed disappointment over the shockingly high increase in excise on cigarettes. The Government, on 1st October 2010, announced a 3 sen per stick increase on cigarette excise which translates into a significant 16% excise increase.

“Our disappointment with the decision to raise excise to such a high level stems from the fact that we are genuinely concerned with what this will do to the already excessively rampant trade of illicit cigarettes in the country. The greater the price discrepancy between legal and illicit cigarettes, the more attractive illicit cigarettes will become and we have stressed this point many times before,” said William Toh, Managing Director, British American Tobacco Malaysia. “Given this huge excise increase we know we will have a greater challenge in sustaining our legal volumes against the illicit cigarettes trade.”

The country is already at the top of the global illicit cigarettes trade incidence list in 2009 (according to a Global Tobacco Report from Goldman Sachs) and it looks like Malaysia's illicit cigarettes trade is set to grow from strength to strength.

As a result of the increase, taking into consideration the consequent impact of sales tax, trade margins and inflation, British American Tobacco Malaysia has increased its cigarette prices across the board for cigarette packs of 20-sticks by 70 sen and cigarette packs of 25-sticks by 80 sen.

The new cigarette prices, effective Monday, 4th October 2010, are as follows:-

Dunhill Fine Cut 20s range  RM 10.70
Dunhill 20s range    RM 10.00
Kent 20s range    RM 10.00
Pall Mall Plain 20s   RM 10.40
Pall Mall 20s range   RM 8.50
Pall Mall 25s range   RM 10.50
Peter Stuyvesant 20s range  RM 8.50
Benson & Hedges 20s   RM 10.00
Lucky Strike Plain 20s   RM 10.40
Rothmans International 20s  RM 10.40

About British American Tobacco (Malaysia) Berhad

British American Tobacco (Malaysia) Berhad (British American Tobacco Malaysia) emerged on 3rd November 1999 from the merger of Rothmans of Pall Mall (Malaysia) Berhad and Malaysian Tobacco Company Berhad. These two long established tobacco companies brought with the merger, experience and an unrivalled portfolio of highly successful international brands to create the largest tobacco company in the country.

British American Tobacco Malaysia manufactures and markets high quality tobacco products designed to meet diverse consumer preferences. Brand portfolio includes well-established international names like Dunhill, Kent and Pall Mall. British American Tobacco Malaysia has about 1,600 employees who are involved in the full spectrum of the tobacco industry, from leaf buying and processing to manufacturing, marketing and distribution.       

British American Tobacco Malaysia is part of the British American Tobacco group, which is the world’s most international tobacco group and the second largest stock market listed tobacco group by global market share.

For more information, please contact British American Tobacco Malaysia:

Mr Chin Tuck Weng, Corporate Affairs Manager at 03-7941 7318 or
Mr Daniel Lui, Corporate Communications Manager at 03-7491 7311 or