Tobacco.org

Analysts surprised by tobacco duty increase before tabling of budget 

ANALYSTS said they were caught by surprise over the government's move to raise excise duties on tobacco, three weeks ahead of the tabling of Budget 2010.

They said the directive to increase tobacco excise duties by 1 sen per stick to 19 sen came earlier than anticipated. They had thought that any increase would be announced during the tabling.

The last time the government raised tobacco excise duties before Budget Day was in July 2007. Over the past few years, it has typically increased duty by 3 sen per stick.

Analysts said tobacco manufacturers had raised their prices by as much as 30 sen per pack from yesterday in response to the higher duties.

The increase in both excise duties and prices has fuelled concern of a rise in illicit trade.

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