The proposed excise tax on all cigarette and tobacco products in duty-free areas will cause a negative multiplier effect on the Malaysian economy, said duty-free retailing group The Zon Duty Free.

Director Ong Bok Siong said the move by the government would not only impact the revenue of retailers but may also discourage tourists to visit what will be semi duty-free zones; threaten jobs that are needed by predominantly B40 communities and de-incentivise foreign and local investments into these areas...