PETALING JAYA: Anticipating an increase in indirect taxes for the tobacco industry soon, British American Tobacco (M) Bhd hopes the Budget 2011 proposals will reflect a moderate and gradual excise increase regime in view of the widespread presence of smuggled cigarettes in Malaysia.
Its managing director William Toh said on Wednesday, Sept 8 that research showed illicit cigarettes in Malaysia jumped from 14.4% in 2004 to the current 37.5% level.
Toh was concerned about the increase in the illicit cigarettes, adding the level would likely continue to climb due to further tax-led wide price gap increases between legal and illegal cigarettes.
He said the "burgeoning black market" had become a "daunting challenge" for the industry as its lucrative multi-billion ringgit trade had deprived the government of tax revenue, impacted the legitimate tobacco industry as well as undermined the health agenda with availability of cheap smuggled cigarettes.
"BAT Malaysia is not opposed to excise increases but we advocate a moderate and gradual taxation approach," Toh told a media briefing.
Its managing director William Toh said on Wednesday, Sept 8 that research showed illicit cigarettes in Malaysia jumped from 14.4% in 2004 to the current 37.5% level.
Toh was concerned about the increase in the illicit cigarettes, adding the level would likely continue to climb due to further tax-led wide price gap increases between legal and illegal cigarettes.
He said the "burgeoning black market" had become a "daunting challenge" for the industry as its lucrative multi-billion ringgit trade had deprived the government of tax revenue, impacted the legitimate tobacco industry as well as undermined the health agenda with availability of cheap smuggled cigarettes.
"BAT Malaysia is not opposed to excise increases but we advocate a moderate and gradual taxation approach," Toh told a media briefing.
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