Sunday, October 02, 2005

A true cigar price comparison

Increasing the price of cigarette is arguably the most effective method of curbing the consumption of cigarette. Coin is two sided. The cigarette's price increased would trigger the elaboration of tobacco plantation and also induce the activity of smuggling. Viewing from the angle of economic, governments of most developing countries saw the wealth of duty thus allowing the existence of tobacco planting and manufacturing activities in their countries. On the other hand, since they've realized that smoking was no longer an adult's activity thus they want price control to stop the growth of young smokers. The conflict is there. What is the objective and who is actually committing the sin?

Price of cigarette and liquor was increased due to the heighten of duty after the announcement of the Malaysian 2006 budget. The Prime Minister, Datuk Seri Abdullah Ahmad Badawi said: "To encourage Malaysians to adopt a healthy lifestyle, the Government proposes that tax on liquor and cigarettes be increased". His statement looks good by using the word "encourage". Smokers and drinkers will at least feel comfortable. Not like TheSar paper, putting such a headline "Paying more in sin taxes" inside their Nation's column yesterday. It is absurd to signify that smokers and drinkers are all the sinned people! They've never the less impinged the human right of smokers and drinkers! There at least an exception that smoking and drinking are not violent and excited activities in the spirit of atheist.

After the price increase of cigarettes, politicians are applauding to say that the price of cigarettes in Malaysia is still lower if compared with those Asian countries. Take a look on the graphical comparison chart of a local newspaper. It's only a simple price comparison chart in RM only and topped the Singapore with RM24.50; Hongkong in third place with RM12.50. In fact, Hongkong's cigarette-price is the lowest!

In order to serve the objective of true price comparison in terms of Purchasing Power Parity. I have come out with the following version to share with smokers.


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