E-Malt.com News article: Malaysia: Excise duty on beer not to change in 2011

The government has been prudent in not imp0osing another round of excise duty increase in the Budget 2011 as this would have exerted tremendous pressure on the industry, Bernama.com cited brewer Guinness Anchor Bhd (GAB) on October, 15.

“GAB welcomes the news that the Government has decided not to raise the excise duty on beer and stout for the coming year, particularly in this economic downturn which has had a significant impact on both businesses and the man-on-the-street,” GAB’s Managing Director, Charles Ireland, said in a statement.

Malaysia’s Prime Minister Datuk Seri Najib Tun Razak unveiled the 2011 Budget at the Parliament on October, 15.

Malaysia’s current duty levels on beer and stout are the second-highest in the world after Norway.

Ireland also hoped that the Government would consider a review of excise duty structure to bring it in line with global best practices.

“Australia’s structure could be referred and might give some example in line with global best practices,” he suggested.

In Australia, excise duty on beer and spirits is based on the level of alcohol content in a drink.

In Malaysia, beer and stout are subject to an excise duty payment of RM7.40 per litre, ad valorem duty payment of 15% on the ex-brewery price for the beer products, and sales tax of 5% of principally the ex-factory invoice price on all products sold.

In 2009, the industry paid RM1.46 bln in taxes.


15 October, 2010