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BAT urges Govt to consider gradual hike in cigarette taxes 

British American Tobacco (M) Bhd (BAT) is asking the Government to consider a more gradual increase in excise duty on cigarettes in future to discourage the smuggling of illicit cigarettes.

The excise duty on cigarettes rose to 25% last year from 14% in 2004.

Head of business development Azlan Ibrahim said high and sporadic tax increases over past years that had resulted in sharp hikes in the retail price of cigarettes, had forced consumers to buy and hence, create the demand for illicit cigarettes.

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