Malaysia may raise tobacco taxes 11pc

The Malaysian government may raise tobacco taxes by at least 11 per cent as it takes steps to discourage smoking and cut its budget deficit, according to Maybank Investment Bank Bhd.

The excise duty on cigarettes may be increased by 2 sen to 20 sen (5.7 cents) a stick when the government unveils next year’s budget on October 23, Khair Mirza, a Maybank analyst in Kuala Lumpur, said in a report today. He kept a “neutral” rating on Malaysia’s tobacco stocks.