GOVT PLANS PRICE FLOOR FOR CIGARETTES

PUTRAJAYA, Oct 29 (Bernama) -- The government plans to impose a price floor
for all cigarettes as part of efforts to check smoking habits especially among
youths.

Health Minister Liow Tiong Lai said all quarters including the industry
and the Cabinet in its meeting on Sept 17 had agreed to the introduction of the
minimun price.

He told reporters here Wednesday that the ministry was in the final stage
of
drafting the Control of Tobacco Products (Sale of Tobacco Products) Regulations
2008 to implement it.

"According to a study by the World Bank, taxes on tobacco and the price of
cigarettes in the market are the most effective strategy in controlling the use
of tobacco especially by the younger generation, namely children, youths and
low-income earners.

"For the sake of children and youths, to keep them off cigarette addiction
and probably the risk of drug abuse, the government is very committed to
protecting the younger generation by reducing their accessibility to
cigarettes," he said.

Liow said the minimum price would be determined by taking into account all
taxes imposed by the government and the profit made by the cigarette industry --
probably not less than 30 sen per stick by year end.

The minimum price would be adjusted each time there is a change in taxes,
he
added.

Under the regulations, retailers found guilty of selling cigarettes below
the minimum price could be fined up to RM10,000 or sentenced to jail not
exceeding two years or both, he said.

From January next year, cigarettes sold in Malaysia must have picture
warnings, information on cigarette content, statement on the prohibition of sale
to people below 18, the name and address of the manufacturer or importer, date
of manufacture and the number of sticks per pack following the gazetting of the
Control of Tobacco Products (Amendment) Regulations 2008 on Sept 15, he said.

"By June 1, cigarettes which do not have the all these must be withdrawn
from the market," he said.

Following the amendment also, the use of false, confusing and deceptive
descriptors and terms which could create misconception such as "low tar",
"light", "ultra-light" and "mild" is prohibited with immediate effect, Liow
said.

The new regulations also saw National Service training centres being turned
into no smoking areas and this is applicable to all trainees, staff and
visitors.

Meanwhile, the no smoking areas at shopping complexes now include five foot
ways around the building.

"The amendments are made to fulfil the government's commitment to the
provisions in the World Health Organisation Framework Convention on Tobacco
Control which Malaysia is a party since December 2005," Liow said.

He said those found breaking the regulations would be fined up to RM10,000
or sentenced to jail not exceeding two years or both.

So far this year, 2,622 smokers had been slapped with compound fines
totalling RM564,000 while 1,946 cases had been brought to court, he said.
US$1=RM3.5
-- BERNAMA