Chairman, Tan Sri Mohd Salim Bin Fateh Din at British American Tobacco (Malaysia) Berhad 55th Annual General Meeting Press Conference.Also present MD, Stefano Clini and Finance Director, Pablo Sconfianza. --Art Chen/ The Star.
KUALA LUMPUR: Malaysia's biggest cigarette maker British American Tobacco (M) Bhd (BAT) is hoping that the Government will freeze any further excise duty hike this year to help stabilise the tobacco industry.
Managing director Stefano Clini said that the local tobacco industry had experienced three excise duty hikes since September 2013, the last one in November which saw the tax jump by 36%, and was in need for a temporary halt.
Amid the backdrop of economic conditions, coupled with the highest ever excise increase of close to 40%, he said it had caused the illegal cigarette trade to escalate drastically.
"Consequently, the legal volumes plummeted last year and we continue to suffer," he told reporters during a media briefing after the group's 55th AGM.
In March, BAT announced that it would cease its manufacturing operations under an operational restructuring that would see it sourcing tobacco products for the domestic market from other British American Tobacco group factories regionally.
BAT said the restructuring was in line with the company’s efforts towards realising a new and more sustainable business model, amid an increasingly challenging business environment brought about by high excise.
* See also BAT to close factory in M’sia under restructuring exercise
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