♦ A duty hike of 3 sen/stick. After discussion with management, we
understand that the rise in cigarette prices effective 4 Oct was due to a rise
in excise duty of 3 sen/stick. This translates to a 60 sen excise duty increase
per pack. The 70 sen/pack hike price was arrived after taking into account
the 5% sales tax and rounding it up. Note that the price hike does not take
into account the potential 0.5 sen/stick cess by the NKTB, as we understand
that there is no news on whether or not this cess will come into play. We
have thus adjusted our FY10 excise duty assumption to 20 sen from 19
sen/stick (to take into account the two-month impact), and 22 sen for FY11-
12.
British American Tobacco Berhad : A Duty Hike Of 3 Sen Per Stick - 04/10/2010
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