Cigarettes Price Increase
Well, being a smoker myself, one of the “must look” items from a new budget plan been announce every year is none other than the increase of cigarette’s price. The annual increase had been a trend for many years (as far as I can remembered) and to be honest, most smokers that I know (including me) will not stop this bad habit just because of price increase; they will simply find alternatives to satisfy their needs (buying cheaper/smuggled brand, shift to the traditional “rokok daun1“, etc). I noticed today that British American Tobacco Malaysia had made an announcement that the company will increase all their tobacco base product which will be effective starting today. No need to make a guess; it’s because the new budget plan for 2009 announced by the prime minister.
Petaling Jaya, 1 September 2008 – As a result of the significant 20% excise increase, and taking into consideration the consequent impact of sales tax, trade margins and the higher than normal inflationary impacts on our own cost base, as global tobacco, paper and fuel costs have all increased by double digit amounts, British American Tobacco Malaysia has revised its cigarette prices.
The new cigarette prices, which will be effective Monday, 1st September 2008, are as follows:-
• Dunhill Fine Cut 20s range RM 10.00
• Dunhill D360 20s range RM 9.40
• Dunhill King Size 20s range RM 9.00
• Dunhill King Size 14s range RM 6.50
• Kent King Size 20s range RM 9.00
• Pall Mall Plain 20s RM 9.40
• Pall Mall King Size 20s range RM 7.50
• Pall Mall King Size 14s range RM 5.50
• Pall Mall King Size 25s RM 8.20
• Benson & Hedges King Size 20s RM 9.00
• Benson & Hedges King Size 14s RM 6.50
• Perilly’s 100s 20s RM 7.70
• Perilly’s King Size 20s range RM 7.50
• Perilly’s King Size 25s range RM 8.20
My Take
Since it’s really a predictable move, I’m not surprised at all. At some point I would say it’s a good move because the intent is to discourage people from continuing the smoking habit. But, on the other hand, is it effective? Each year we see increases, but does that stop the habit significantly? From my personal experience, no it does not. People will seek for alternatives (be it legal or not) and to be honest really…the solution to remedy the smoking problem is always not laying on money, it’s the attitude (and hunger, lust, craving for it…hehehe true smokers know what I’m saying 
). Will I stop? Maybe in the future but surely not because of price increases 
Well, there’s no other brand such as Marlboro, but I guess you can figure out that the price increase will be similar
smoking IS DANGEROUS TO YOUR HEALTH. I’m obviously did not promoting this bad habit 
This is just for information purpose only.
- Local hand rolled cigarettes. The tobacco been wrapped in a nipa/nipah/nypa palm leaves. ↩
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Im a Singaporean myself, but I occasionally go to JB for cheaper ciggs. Since the price increase, I’ve been turned off by the hike in prices. I’ve been wondering where will the extra $$ go to, and since it goes to the tobacco company, I guess its alright. I might go to JB for those sticks again. I just want to ask, does the Malaysian government earn anything from the recent price increase?
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Amir Hamzah Reply:
Mozilla Firefox 3.0.3 Ubuntu LinuxOctober 10th, 2008 at 1:05 pm. Mozilla Firefox 3.0.3 Ubuntu Linux
As far as I know, no, the extra $$ doesn’t go to the tobacco companies; it will go straight to the government. To put it a little bit more specific, the increase is on the excise (tax), so…yes, the government do “earn” something from the increase
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I’m with you, I’m hardly surprised by the increases and will not be quitting as a result of the price increases, rather my own good judgement will be the determining factor really.
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Amir Hamzah Reply:
Mozilla Firefox 3.0.6 Windows XPFebruary 12th, 2009 at 12:58 am. Mozilla Firefox 3.0.6 Windows XP
Yup, the increases will change almost nothing; we just keep it going if we really didn’t have the intentions to stop
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Oh no, this is not a good thing to increase the price.
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It is important to Stop Smoking today!
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Increasing the price will not get this habit gone, just will increase the cash flow on this bigs industry of tobacco.
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Sadly this measurament will not do a great diference on the habitual consumer of tobaco, they have an adiction and a few cents more is not a reason to let it behind.
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If the increase sales prices of tabacco goes up, maybe that will make a lot of people not smoke. Just becasue smokin is an expensive habit. Smoking is very gross and makes you age a lot faster and it makes you stink.
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I personally don’t smoke anymore but I had to pick up a pack of camels for my friend recently. $8.20! As a former nicotine addict I can’t imagine that people will suddenly quit because of yet another price increase.
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I’m not sure that taxes or price increases really help to reduce smoking. The problem with taxing smoking is you are trying to get revenue from a shrinking market. But like you said, maybe it helps to deter some.
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No mater how much the price rise, the tobacco consumers are one of the more loyalty on the market, every warning on the boxes can avoid the tobacco consuption decrease, a few cent of diference on the price cant do it too.
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If the government didn’t push them to put warning on the package they wouldn’t do it. However why aren’t there any warnings on alcohol products?
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I live in Russia, we have lower prices on cigarettes
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It is hard to Stop Smoking at all but i tried so hard to quit smoking because of the fear of lung cancer *
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Well, you didn’t promote it but it clearly seemed that you don’t see any harm on smoking. There are many different options for smokers that want to quit. I recommend you electronic cigarettes.
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Amir Hamzah Reply:
Mozilla Firefox 3.6.3 Windows XPMay 22nd, 2010 at 1:52 pm. Mozilla Firefox 3.6.3 Windows XP
I do see the harm, it’s just so hard to quit you know. Anyway, never try the electronic cigarettes, maybe I can try that later on
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