The Finance Ministry announced a 150% increase in excise duty for locally produced hard liquor from RM24 per litre to RM60 per litre.
The new excise duty rate effectively increases the cost of local alcohol products, and we project a 60% drop in sales among our members,” said Malaysian Liquor Manufacturers and Bottlers Association deputy secretary Ngan Meow Yiap.
The increased duty would not be applied to imported hard liquors. The new alcohol prices scheme will come into effect after December 15, 2016, as the Finance Ministry has granted the alcohol industry a short preparation period before implementing the ruling.
Once implemented, the price of local liquor will increase by almost 75%.