KUALA LUMPUR: The 2021 Budget reflected the government's commitment in their fight against illicit cigarette trade in the country, said Japan Tobacco International Bhd (JTI Malaysia).
Its managing director, Cormac O' Rourke, said strengthening the Multi-Agency Task Force with the participation of the Malaysian Anti-Corruption Commission and the National Financial Crime Centre was the right step in combating the black economy.
"We are particularly pleased with the announcement that cigarette transhipment activities will be limited to certain ports only. We have called on a ban on transhipment of tobacco products time and again as this loophole has been exploited for years."
He said high levels of illegal trading, strong and consistent implementation and effective enforcement were necessary to address a key smuggling channel for contraband cigarettes, which had resulted in the massive losses to the country over the years.
He said JTI Malaysia also welcomed the position taken by the government not to increase excise tax for cigarettes, as the illegal cigarette industry accounts for 64.5 per cent of total market consumption.
In George Town, the Consumers Association of Penang lauded the move to impose 10 per cent excise duty imposition on all electronic and non-electronic cigarette devices, including vape devices from Jan 1 next year.
Its president, Mohideen Abdul Kader, said the excise duty should also be applied to such items sold at airports and not only at duty-free islands such as, Labuan, Langkawi, Tioman and Pangkor.