KUALA LUMPUR, Jun 2 – The government has decided to maintain the retail prices of tobacco products including cigarettes even though the Goods and Services Tax (GST) has been zero-rated effective yesterday, said the Finance Ministry.
The ministry in a statement today said the government had made a stand and stressed that the retail prices of tobacco products including cigarettes could not be reduced as these products are detrimental to health. “Any reduction in retail prices will be considered as a form of indirect promotion and is against Regulation 5A of the Control of Tobacco Product Regulations 2004,” it said.
The ministry said maintaining the retail prices of tobacco products including cigarettes was also in line with Article 6 of the World Health Organisation Framework Convention on Tobacco Control, which has recognised that tax measures and price control mechanism were effective in reducing demand for tobacco products. — Bernama