Fags in Labuan still being sold higher
Published on: Friday, April 24, 2015
Labuan: The price of all popular brands of cigarettes such as Dunhill, Benson & Hedges, Pall Mall etc under British American Tobacco Malaysia (BAT) had been revised back to pre-GST prices and lowered by 50 sen as of last Friday. However, the lowered price is not for duty-free island like Labuan.A check showed that the international brands were still retailed at RM8.20 per 20-stick pack compared to RM7 before. The new price came effective on March 30. Elsewhere the revised price of Benson and Dunhill is RM13.50 while for Pall Mall is RM12.
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In revising the price, BAT announced that due to current market situation and to remain competitive it had decided to revert to pre-GST prices.When queried, a coffee-shop owner, Bendard Wong, said: "We have no instruction to go back to pre-GST prices for international brands sold on the island, nor reduce the margin of increase, this matter is not in our hands."When cigarettes companies introduced the new prices on the event of GST implementation without offering any reasons, many were upset as to why corporate big boys could charge a higher price for their products overnight, while small traders would be penalised for such conduct.
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The matter was brought to the notice of the Ministry of Domestic Trade, Co-operatives and Consumerism and its Head Aslani Dabi explained that the two wholesalers of cigarettes had been asked to explain why the prices of goods were raised without seeking approval.Aslani said the two wholesalers had been warned that under the Price Control and Anti-Profiteering Act 2011, a fine of RM100,000 could be imposed or a three years' jail term and for second time offenders the fine is RM250,000 or five years in jail.
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