For the tobacco players, we do not foresee any excise-duty hikes to materialise in Budget 2020. This is due to the unresolved illicit cigarettes trade situation constituting 60% ofthe market since the Government’s aggressive spate of duty hikes from 22sen/stick in 2013 to 40sen/stick in 2015, which has been further exacerbated by the rise of cigarettes sold with fake tax stamps, alongside unregulated vape products retailed at relatively more affordable prices than legal cigarettes. We believe any possible revisions to the excise-duty structure would be more likely to occur following the enactment of the MOH’s new Tobacco Act, which is guided to be tabled in Parliament by March 2020 and encompass a broader spectrum of regulations on the usage of tobacco, vape, e-cigarettes and shisha.
Credit to AffinHwang-Capital 20190920-Economy-Budget-2020-Preview
enlightened next stage to monitor for MOH's new Tobacco Act by March 2020
Tobacco firms related news:
https://www.thestar.com.my/business/business-news/2020/01/28/tobacco-firms-combat-falling-sales
https://www.theedgemarkets.com/article/clear-days-remain-elusive-tobacco-firms
The Economics of the Illicit Tobacco Trade in Malaysia
This report seeks to highlight the economic consequences of the illicit trade on all aspects of the Malaysian economy. As well as quantifying the size of the illicit tobacco market, it seeks to estimate the level of tax evasion that occurs due to its existence. Additionally, we explore some measurable examples of the losses the country’s economy has incurred as a direct result of the illicit trade, primarily through the closure of cigarette factories. Credit to Oxford Economics.
https://klse.i3investor.com/blogs/CatchTheBull/2020-01-31-story-h1482991851-Have_faith_in_BAT_British_American_Tobacco_Malaysia.jsp
