I AM writing in response to recent reports on Malaysia’s staggering tax losses of RM5.1 billion for the fiscal year 2018, which can be traced to the illegal sale and import of cigarettes.
A report released by Oxford Economics found that:
ILLEGAL cigarette consumption covers 59 per cent of smokers in the country, which is more than half of them.
SALES of illegal cigarettes have increased by 40 per cent since the tax hike on tobacco in 2015.
RAMPANT illegal cigarette sales have resulted in 1,000 packs being bought every minute in Malaysia, causing severe loss of profits and additional social issues for the nation.
Besides affecting the country’s image, this issue should be considered a major economic and social hurdle.
As a nation dealing with debt, we seem to have an additional challenge with illegal cigarettes, which does not reflect a developing nation. We have the shame of having the highest number of illicit cigarette smokers in the world.
The rampant smuggling of cigarettes has cost the government RM5.1 billion in unpaid tax duties. The money could have been used to improve the quality of life and provide assistance to those in need, such as school infrastructure, medical aid, road works and basic amenities.
In the face of rising living costs and the slow economy, any assistance to the people will surely be appreciated.
It is time the agencies tasked with this clean-up to moved into high gear.
The Malaysian Anti-Corruption Commission needs to investigate and take action against any individuals and officials who have not only turned a blind eye to the crime, but also lined their pockets, allowing smugglers to flood our nation with illegal cigarettes. This criminal behaviour is affecting the country. Perhaps thought should be given to revoking the licences of businesses found to be selling illegal cigarettes, with stronger penalties for those that sell to children.
If the nation does not get behind the issue and officials do not step up enforcement, the tax hike and public smoking bans will be in vain.
Every day that we delay means more profits for smugglers and those who benefit from the criminal activity, while the government continues to lose millions in tax duties.
MUHAMMAD NIZAM KHAMIS
Kuala Lumpur