Malaysia middle tobacco excise tax proposal would play into the hands of criminal gangs

 the compiler Malaysian Tobacco Manufacturers Union strongly feel that the cigarette tax increased by four times the requirement is an extreme tobacco tax proposal, which the middle of the play into the hands of criminal gangs.

Recently, the Malaysian Tobacco Control Commission (MCTC) called on the government to raise cigarette taxes and cigarette prices four times to dispel the idea of ​​smokers smoking, reducing non-communicable diseases.

Malaysian Tobacco Manufacturers Alliance chairman Shahrul Azamin Abdullah said that this ignores the terrible consequences of this proposal requirements, in order to more precisely criminal gangs smuggling illegal cigarettes into Malaysia are waiting the results.

July 19, he said in a statement: “from the wider environment, a broader perspective on Malaysian Tobacco Control Commission recently put forward a proposal, it is very important.”

According to Malaysian Tobacco Manufacturers Alliance in late 2012 to carry out “illegal cigarette research,” non-cigarette problem still is real and very serious problem, 34.5% of the market each year, or about 8 billion illegal cigarettes are cheap imported cigarettes.

According to the Malaysian government said that the problem is very serious, the national consumption tax annual loss of about 2 billion ringgit.

He stressed that the reality of the situation is that there are more than 130 kinds of illegal cigarette brands to sell low-priced as low as 3.5 ringgit.

“The prices are just countless shops throughout Malaysia that the minimum price of cigarettes 7 ringgit half price and tax increases for those who are looking supporters crowd – those low-income people and young people, this Cigarettes are very easy to buy, but also can easily afford. ”

“The cigarette tax increase fourfold requirements, will make legal the price of cigarettes per pack from the current 10.5 ringgit increased to about 25 ringgit, while the price of illegal cigarettes in the past 10 years have not changed.”

He stressed: “This requirement will only lead to a surge of illegal cigarette volume, but by those who do not care about their unregulated, untaxed products are how to sell, where to sell, and sell to someone’s illegal persons are welcome. ”

Cigarette prices in Malaysia is the third highest in the ASEAN countries, the price, after Singapore and Brunei.

He added that there are many countries in the world recognize that a sudden increase in illegal cigarettes and the link between the consumption tax, and therefore choose not to raise taxes on cigarettes.

He said: “For example, since the spread of illegal cigarettes, Singapore has increased for eight consecutive years without a cigarette excise tax.”