Excise tax pulls down cigarette sales

Manama : It seems like government’s tough anti-smoking initiatives along with the recent tax hikes are discouraging smokers from continuing their habit at least for now. 

Several cold store operators in the Kingdom told DT News that there is a dramatic decline in cigarette sales volume after the implementation of the excise tax. 

However, sales of the carbonated drinks are yet to feel the pinch.

Consumers, according to cold-store operators, are now buying less number of cigarette packets than earlier. 

Mohammed Islam, a Bangladesh national, told DT News that he may have to “stop smoking altogether” to stay within his budget.

He said he was forced to return from a store without buying cigarettes after finding the new price tags. 

“While living on a small salary, any increase in prices affects us greatly. I can’t afford to pay double for anything, whether it is cigarettes or food or rent.” 

“Now, if I choose to smoke like I used to, I may not have enough money to send back to Bangladesh. 

“So I will have to cut down or stop completely,” he said. 

Accounts of cold-store salesmen also gave us the same picture.  

“Price hike has forced heavy smokers, who usually buy 2 to 3 packets a day, to cut down,” a cold store salesman told us.    

The doubling of prices, according to cold-store operators, are scaring the customers away. 

“I have had many customers come in, ask the price of cigarettes and leave without buying anything.”

A cold store salesmen from Anwar Al Zinj in Bilad Al Qadeem told DT News he is expecting “a lot more of this”.

“There are many who are poor but kept up the cigarette habit as they could afford it,” he said. “But it doesn’t seem to be the case anymore.” 

Another cold store salesman in Manama, Majeed, pointed out that there are many who smoke 3 to 4 packets of cigarettes a day. “They will feel the pinch, even if they are rich. They are going to buy less.”

However, for Energy drinks, things are still rosy. According to cold-store owners, companies are yet to transfer the burden of the price hike to consumers as “old stokes are selling at old prices” now. 

Revised estimates also state that even though prices of other fizzy drinks have increased sales are still strong.