Sunday, November 7, 2010
NO ONE saw it coming. Effective November 1, the excise duty on cigarettes in Brunei was increased to 25 cents per stick. This is the latest amendment to the Customs Import Duties Order 2010 on tobacco products.
If you are a smoker, no doubt you are feeling the pinch; stocking up on the last night before the price was hiked, rationing the number of sticks smoked per day, etc. However, this could be the opportunity for smokers to consider stopping their smoking habit. Because when you quit smoking, you can say "goodbye" to the harmful effects of tobacco, and "hello" to cold hard cash.
THE HIGH COST OF SMOKING
Although new retail pricing of cigarettes has not yet been officially announced by authorities until probably sometime this month, many have assumed that the new prices would range between $8 and $10 per pack, about three times more than the old prices.
"An average smoker may smoke one pack of cigarettes per day. Let's assume that with the newly imposed tax already in effect today, a pack of cigarette at the nearest store would cost the smoker an average of $8," says Rozalinda Khani, a civil servant.
She has been trying to encourage her two elder brothers to quit smoking since they were in secondary school but has been unsuccessful.
"Assuming that the smoker will not increase his or her habit, but instead remain steady at one pack of cigarettes per day for an entire year, therefore, by multiplying $8 by 365 days, the result is a staggering $2,920 per year.
"If you were to average this monthly, you will have savings of about $243 per month," she says.
"You can spend that $243 you saved in a month for a fun-filled weekend shopping spree, and you can use that $2,920 from a year of abstinence for a year-end getaway in Hong Kong!" she muses.
THE POWER OF $10
With cigarettes now pricier, 25-year-old Sazali feels that it's time for him to quit the habit because he felt that wasting his money on cigarettes will put too much strain on his earnings.
"A pack of cigarettes used to cost me $2.50 for this one particular brand. There are 20 sticks in each pack, which means between 12 and 13 cents per stick. With the new tax, that would make the new price of a pack about $7.50 today, which means I will be chugging out my $10 note from my wallet more often for a fresh new pack," he says.
"Bruneians strongly appreciate the significant value of the red $10 note for their basic daily expenses. With just $10, you could get a half tank of petrol that could last you for three days, or a $10 worth of an Easi card that could last you for a week or less, or even your lunch in a single day," he adds.
A FATTER WALLET
Ramli, a sales manager working for a private company, is an ex-smoker. Quitting smoking some two years ago changed his life as well as his finances.
Although his decision to quit was at a time when cigarettes were still cheaper, it gave a huge impact on his spending habits.
"The best part of giving up smoking was the money I saved from spending on cigarettes, although I have to say I have never really seen that money I was saving, but it made me aware of how much extra cash I have in my wallet compared to my days as a smoker," he says.
Ramli says his average spending on cigarettes in just a year alone amounted to $800 at a rate of one pack per two days, which would have been enough for him to buy his wife a new phone as an anniversary gift.
"As I began to realise this, I got so much more addicted to saving money than the nicotine. I hardly ever experienced running out of cash close to the end of the month. It has been a great motivation for me, and my wife has never been happier.
If you are a smoker, no doubt you are feeling the pinch; stocking up on the last night before the price was hiked, rationing the number of sticks smoked per day, etc. However, this could be the opportunity for smokers to consider stopping their smoking habit. Because when you quit smoking, you can say "goodbye" to the harmful effects of tobacco, and "hello" to cold hard cash.
THE HIGH COST OF SMOKING
Although new retail pricing of cigarettes has not yet been officially announced by authorities until probably sometime this month, many have assumed that the new prices would range between $8 and $10 per pack, about three times more than the old prices.
"An average smoker may smoke one pack of cigarettes per day. Let's assume that with the newly imposed tax already in effect today, a pack of cigarette at the nearest store would cost the smoker an average of $8," says Rozalinda Khani, a civil servant.
She has been trying to encourage her two elder brothers to quit smoking since they were in secondary school but has been unsuccessful.
"Assuming that the smoker will not increase his or her habit, but instead remain steady at one pack of cigarettes per day for an entire year, therefore, by multiplying $8 by 365 days, the result is a staggering $2,920 per year.
"If you were to average this monthly, you will have savings of about $243 per month," she says.
"You can spend that $243 you saved in a month for a fun-filled weekend shopping spree, and you can use that $2,920 from a year of abstinence for a year-end getaway in Hong Kong!" she muses.
THE POWER OF $10
With cigarettes now pricier, 25-year-old Sazali feels that it's time for him to quit the habit because he felt that wasting his money on cigarettes will put too much strain on his earnings.
"A pack of cigarettes used to cost me $2.50 for this one particular brand. There are 20 sticks in each pack, which means between 12 and 13 cents per stick. With the new tax, that would make the new price of a pack about $7.50 today, which means I will be chugging out my $10 note from my wallet more often for a fresh new pack," he says.
"Bruneians strongly appreciate the significant value of the red $10 note for their basic daily expenses. With just $10, you could get a half tank of petrol that could last you for three days, or a $10 worth of an Easi card that could last you for a week or less, or even your lunch in a single day," he adds.
A FATTER WALLET
Ramli, a sales manager working for a private company, is an ex-smoker. Quitting smoking some two years ago changed his life as well as his finances.
Although his decision to quit was at a time when cigarettes were still cheaper, it gave a huge impact on his spending habits.
"The best part of giving up smoking was the money I saved from spending on cigarettes, although I have to say I have never really seen that money I was saving, but it made me aware of how much extra cash I have in my wallet compared to my days as a smoker," he says.
Ramli says his average spending on cigarettes in just a year alone amounted to $800 at a rate of one pack per two days, which would have been enough for him to buy his wife a new phone as an anniversary gift.
"As I began to realise this, I got so much more addicted to saving money than the nicotine. I hardly ever experienced running out of cash close to the end of the month. It has been a great motivation for me, and my wife has never been happier.
courtesy of---" The Brunei Times
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