AFTER the deputy health minister announced plans to increase the tax on tobacco, several parties said that this would cause smokers to turn to illicit cigarettes, and that these cigarettes were more harmful than legal ones.
Let us be clear: cigarettes, whether legal or illicit, are harmful and addictive. There is no safe level of smoking, regardless of the type of cigarette. They are linked to 16 types of cancer, 25 life-threatening diseases and result in 20,000 deaths in Malaysia each year.
Increasing the tobacco tax, implemented alongside other tobacco control programmes, including education, is one of the most effective measures to control tobacco use. Increased cigarette prices encourages smokers to quit or smoke less, and discourages non-smokers to start. A United States study found that an increase in the cost of smoking by just US$2.25 (RM9.97) a day led to 40 per cent of tobacco users kicking the habit.
In addition, tobacco taxes benefit the poor more than they do the wealthy. As the poor are more affected by changes in price, this group, the most vulnerable to rising healthcare costs, gains more health benefits.
Those opposing the tax increase say it will exacerbate tobacco smuggling in Malaysia. This claim, despite being touted worldwide when any country implements an increase, is not substantiated. The World Health Organisation has not found a direct link between tobacco tax and illicit trade. Singapore, Australia and Hong Kong have higher tobacco taxes than Malaysia, but much lower illicit trade.
While price increases may incentivise smuggling, many other factors, such as enforcement, have a bigger influence. These include the ease of operating in the country, how high the gains and risks are, the likelihood of getting caught and punished, how sophisticated the crime network is, tobacco industry participation and the country’s tax system.
Other countries, such as the US, United Kingdom, Italy, Spain and Turkey, have also succeeded in implementing tax increases without adding to illicit trade.
Italy and Spain scaled up its joint Customs activity and intelligence-gathering, increased their penalties for smugglers, and introduced anti-smuggling legislation. The UK cut its illicit cigarette market by half after introducing the “tackling tobacco smuggling” strategy in 2000.
This shows that tobacco control is not just a health problem, and should not be left to only one ministry or tackled from the health angle alone. The WHO Framework Convention on Tobacco Control, of which Malaysia is a signatory, calls for the help of all ministries.
Increasing tobacco tax is not the sole solution to curb smoking. It is most effective when complemented with other initiatives, one of which is reducing access. People may be more tempted to smoke if they can buy cigarettes anywhere, including coffee shops.
Retailers must be licensed, as they are in many other countries where smoking is declining. This includes Australia, Brunei, Singapore and Thailand.
Make no mistake, tax increases are meant to make cigarettes gradually unaffordable. But, instead of treating them as enemies to our wallets, we should focus on the long-term benefits, including health. Assuming that the masses will turn to illicit cigarettes is almost an insult to smokers, as it implies that they are incapable or reluctant to quit.
More than 60 per cent of smokers in the country want to stop smoking. We support the Health Ministry’s proposal to increase the tobacco tax and cigarette prices, and urge them to implement licensing.
Dr Saunthari Somasundaram, Medical director and president, National Cancer Society of Malaysia