Malaysia's alcohol tax now third highest in the world, hike will boost moonshine demand

PETALING JAYA - The latest increase in beer and stout excise duty by the government is likely to fuel the demand for illegal alcoholic beverages, Guinness Anchor Berhad (GAB) said.

“We are also concerned that the demand for illicit and unregulated alcohol products may increase,” the statement read.

GAB also announced in a press statement that price adjustments on their line-up of alcoholic products had been made, in response to the government’s move to raise excise duty on beer and stout from March 1 onwards.


It is noted that Malaysia’s beer excise duty is the second highest in Asia and the third highest in the world.

“The state of the economy is having a significant impact on businesses and consumers.”

“The latest increase in excise duty on beer and stout will make the environment more challenging to our industry,” the statement read.

Earlier today, The Malay Mail Online reported that alcohol taxes were expected to increase by at least 10% at the end of this week.

It was mentioned that the Finance Ministry was expected to announce the revised rates at a press conference tomorrow.

Several quarters slammed the move, saying that the tax hike would badly affect an already struggling industry.