Stop The Madness!!!

I’m flabbergasted with the news of another cigarette price hike.

It’s even more unusual with the fact that the tax increase is done now and not at the annual budget as it should be. It’s like someone woke up this morning and said, “Gee, I think it’s time for another tax hike now. So when the next budget comes along, we can raise it again.” Putting it in context, the new prices will vary from RM8.00 to RM8.40 depending on brand. Roughly converting, that would be;

• USD 2.35 – 2.47
• EURO 1.78 – 2
• A$ 2.85 – 3
• Philippine Peso 110.72 – 116.25
• Indonesian Rupiah 21150 – 22207

Comparing the prices, in the US, the most expensive average selling price is in Maine at $2.81. In Europe, the most expensive price is in Norway at 5.26 euro while the cheapest is in Turkey at 0.71 euro. In Australia, it sells at a high A$7 in New South Wales and at least A$4.48 in the Northern Territories. Cigarettes in Philippines go from P30 to P40 for non-import brands. In Indonesia, it sells at only R7500.

This brief comparison doesn’t really mean anything. In fact, it shows absolutely nothing. Looking back, I have no idea what I was trying to point out. I just find it annoying that the government insists on raising the taxes. They can call it trying to cut down the number of smokers but if they keep up with their goal of finally reaching RM10 per pack, I foresee 3 possible outcomes. 1) They achieve their target of reducing the number of smokers in Malaysia, 2) People resort to other substitutes such as privately grown tobacco or other tobacco replacements or 3) You get an increase of marijuana smokers of which marijuana is healthier as compared to cigarettes and with the help of the government, might eventually price the same as cigarettes.

I feel for the tobacco companies. By raising the taxes, the government inflicts possible reduction of sales either by public choice of quitting smoking or the imminent choice of contraband. They’re fighting a losing battle. In a world where everyone wants to make a living, they’re the only ones which most of the world boycotts and want to kill their market. They’re not doing anything much wrong. If anything, I think the timber, mining and fishing industry do more harm than them but no government in the world would say no to any of them or do anything that would affect those industries.

Imagine smokers in their 50s who are prone to unthinkable withdrawal symptoms. It’ll be like men having PMS. It’s not going to be nice or how about the ashtray making industry? They’re going to feel the kick as well. Or those people who sell vans to cigarette dealers so they can cart their products around? They won’t be buying more vans anytime soon if they can’t sell cigarettes, can they? Or hospitals that rely on nursing cigarette related cancer patients? It’s just going to affect everyone.

The madness must stop. Give us peace of mind and stop raising the prices. What was wrong with RM5? Bring back those fond memories of days gone by.