Cover image via Thirsty Blogger
On 2 March, news of the Malaysian Finance Ministry mulling over the idea of increasing the alcohol tax spread, with many in the alcohol trade expressing concerns about the effects of the tax increment
Confirming that the government will be announcing the new alcohol tax rates today, 3 March, Guinness Anchor Berhad (GAB) managing director Hans Essaadi informed that they have already made price adjustments to their products accordingly
"GAB acknowledges the news that the government has decided to raise excise duty on beer and stout effective 1 March 2016. As a result, we have made price adjustments to our portfolio of products in line with the new tax structure," read the press statement by GAB's managing director Hans Essaadi, as reported by Malay Mail Online yesterday, 2 March.
"We are also concerned that the demand for illicit and unregulated alcohol products may increase," said Essaadi, adding that the current state of economy may make matters worse for those in the legal liquor industry.
Meanwhile, the Malay Mail Online was reportedly given a revised wholesale price listing of GAB's alcoholic drinks by a pub-keeper and the rates inclusive of the six percent Goods and Services Tax (GST) are as follows:
The list further revealed the the pinch will be greater for those living in East Malaysia, as there is a price hike up to 7% as opposed to the 5% in West Malaysia
Image via Foods Trade
How will the sudden tax hike affect the legal liquor industry?
The Malaysian Singapore Coffee Shop Proprietors General Association president Ho Su Mong lamented that about 30% of their members are already doing poorly due to the increasing cost of living and implementation of GST
"Of our 20,000 members, some 30 per cent are struggling as it is. The increase could put them out of business and cause a loss of livelihood.
"Many members have pleaded with us to urge the government to consider postponing the tax hike till we are in better economic times," said Ho, adding that manufacturers would be forced to increase their prices which would cause a domino-effect that would lead to retailers hiking up their rates too.
**"In the end, our patrons will be paying for it and we will have to deal with the fallout from an angry public," explained Ho when speaking to the Malay Mail Online.**
Malaysian Singapore Coffee Shop Proprietors General Association president Ho Su Mong
Image via The Star
