The Confederation of Malaysian Tobacco Manufacturers (CMTM) today expressed “extreme encouragement” because Budget 2012 did not include tobacco tax increases.

In a statement today, CMTM said the government had taken a very “prudent” approach which will help tackle illicit cigarette trade.

“We are all aware that excessive taxation is one of the critical factors which fuel the trade of illegal cigarettes and as such is indeed very heartened that the government has shown pragmatism in its cigarette taxation approach,” said CMTM.

Coupled with “strong and persistent” enforcement efforts, CMTM said that the status quo on tobacco taxes was a “contructive and effective” strategy to fight illegal cigarette trade.

CMTM represents British American Tobacco Malaysia Berhad, JT International Berhad and Philip Morris (Malaysia) Sdn Bhd.