Putrajaya no to cheaper cigarettes despite 0% GST

PETALING JAYA: Putrajaya says retail prices of cigarettes will remain as they were when the goods and services tax (GST) was in force.

The Finance Ministry said the scrapping of the consumer tax, which came into effect yesterday, should not be an excuse to sell cigarettes cheaper.

“This is because the product is harmful to health and lowering its retail price is a form of promotion that contravenes the Control of Tobacco Product Regulations 2004,” it said in a statement.

It said the government would also fulfil its commitment to the World Health Organisation Framework Convention on Tobacco Control, allowing taxes and other methods on tobacco products to discourage smoking.