PETALING JAYA: Beer and stout lovers will either have to cut back or be willing to fork out more for their favourite beverages as the alcohol tax on both is expected to go up by at least 10 per cent this week.

The Malay Mail Online spoke to a source who said the Finance Ministry was expected to announce the revised rate at a press conference tomorrow.

“We do not know how much the government will increase the tax. It is now at 15 per cent and we think it can go up by an additional 10 per cent,” said the source, adding that manufacturers were now preparing to raise their prices depending on the percentage announced by the ministry.

According to the report, Malaysia has the third highest tax on alcohol worldwide, behind Norway and Singapore.

The portal also spoke to Alcohol Consumer Rights Group founder Deepak Gill who said the tax hike would affect an already struggling tourist industry.

“It is not possible to underestimate the role these beverages play in drawing tourists. Rather than a tax hike, the authorities should instead reduce the tax on beer and stout.

“We already have tourists complaining that our beer prices are ridiculously high and they are considering other destinations,” he was quoted as saying.

He lamented the timing of the tax increase as the prices of alcohol had already shot up due to the Goods and Services Tax coupled with the depreciating value of the ringgit.