Tengku Zafrul had earlier questioned the high sales of cigarettes sold on duty-free islands and its per capita consumption, suggesting that syndicates could be taking advantage of the tax exemption to run an illegal trade. ― Bernama pic
“We would like to see for ourselves the finance minister’s so-called analysis that prove duty-free areas act as hubs for the illegal cigarettes trade,” Wong said in a statement rejecting the minister’s argument and proposal. The minister was also reported saying the government is looking to improve its revenue collection next year, which includes recovering monies stolen by the shadow economy. This would mean excise duties may be imposed on cigarettes sold on duty-free islands.
“Once that is established, the right control is then to limit the quantity that goes into islands instead of removing duty-free status completely,” he said.
What an analysis by finance minister