Authorities Told To Clamp Down On Top-selling Illicit Cigarettes Brands
Dato' Fazli Nordin, Managing Director of RTBA Malaysia, says, “It is indeed time for the new unity Government to take a firm stance against illicit cigarettes that cost the country RM5 billion in tax revenue annually.”
KUALA LUMPUR, 22 January 2023 - Retail and Trade Brands Advocacy Malaysia Chapter (RTBA Malaysia), a non-governmental organisation safeguarding supply chains and brands from criminal conduct, agreed with the Prime Minister, YAB Datuk Seri Anwar Ibrahim’s suggestion for Ministries to work together to stem leakages.
YAB Datuk Seri Anwar Ibrahim has recently advised Cabinet ministers to work together to address the Auditor General’s report in order to stem leakages that contributed to the country’s RM1.5 trillion debt. He mentioned that up to RM10 billion could be saved by plugging leakages.
His statement was echoed by Deputy Finance Minister Datuk Seri Haji Ahmad Maslan, who, in a post to social media, shared seven points on how to tackle the massive debt, with one of the points being to ‘tighten enforcement to eliminate smuggling’.
Dato' Fazli Nordin, Managing Director of RTBA Malaysia, says, “It is indeed time for the new unity Government to take a firm stance against illicit cigarettes that cost the country RM5 billion in tax revenue annually.”
According to the Illicit Cigarettes Study (ICS) in Malaysia report by Nielsen Inc, illicit cigarettes incidence at the national level was at 56.6% in 2022.
Nielsen's Report
Further, according to the report, the top three illicit cigarette brands include John, Era and Canyon. John represents 15.4% illicit cigarettes consumed in Malaysia , topping the charts in Peninsular Malaysia . At the same time, Era and Canyon are 7.7 % and 5.2%, respectively.
“Most illicit cigarettes do not have a Malaysian tax stamp or feature fake tax stamps on their packaging,” said Dato’ Fazli. “These illegally imported cigarettes cost Malaysia billions in unpaid taxes every year, and fund criminal elements in the country.
IP Theft
“Some of these brands may have legitimate products in the market, but are victims to Intellectual Property (IP) theft when criminals imitate their branding.”
“Some of these brands may have legitimate products in the market, but are victims to Intellectual Property (IP) theft when criminals imitate their branding.”
“Interestingly, the Prime Minister has also called for government agencies to work with the Global Operational Network of Anti-Corruption Law Enforcement Authorities, or Globe Network, which is a platform under the United Nations Office on Drugs and Crime (UNODC),” adds Dato’ Fazli.
Illicit Cigarettes Brands
UNODC has a module on IP rights and terrorism, which it states as costing the global economy over US$461 billion (RM1.98 trillion) every year, according to a 2016 estimate. In fact, UNODC states that several terrorist organisations have been identified as participating in the illicit trade of cigarettes in various reports (Shelley & Melzer, 2008).
“In order to effectively reduce or eliminate illicit cigarette trade, the government should focus its enforcement of existing law on smuggling and IP theft against the top illicit brands must be addressed first.” says Dr Fazli.
“We believe that cooperation between Government Ministries, industry players and international organisations will help in eradicating the illicit cigarette trade problem and to recover the billions stolen by the illegal syndicates every year, back into the nation’s coffers,” Dato’ Fazli concludes.
News Admin
