The Confederation of Malaysian Tobacco Manufacturers says the government is losing billions in taxes because of the illicit cigarette trade.
Citing its Illicit Cigarettes Study 2023 report, CMTM said the 1.3% decline reflected positive progress, but more needed to be done as Malaysia remains among the leading markets of illicit cigarettes worldwide. “Consumers are mainly driven by illicit cigarettes that are sold for between RM4 and RM8 per packet, compared to the lowest category of legal cigarettes sold at RM12, due to almost RM9 in taxes per packet,” it said in a statement today.
CMTM supported the customs department’s offer to reward members of the public who blow the whistle on evasion of customs duties and taxes with 10% of the value of goods seized by the department.