JTI Malaysia welcomes measures to combat illegal trading

KUALA LUMPUR Nov. 6 – Japan Tobacco International Berhad (JTI Malaysia) views positively the announcement by the Government to address the illicit cigarette trade in Malaysia.

Managing Director of JTI Malaysia Cormac O’ Rourke said, “We welcome the strengthening of the Multi-Agency Task Force (MATF) with the participation of the Malaysian Anti-Corruption Commission (MACC) and the National Financial Crime Centre (NFCC). We believe this task force is the right vehicle to combatting 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.

"At a time when the country is grappling with high levels of illegal trading, strong and consistent implementation and effective enforcement is key. These are necessary measures to address a key smuggling channel for contraband cigarettes which has resulted in the massive losses to the country over the years”.

"At the same time, we also welcome the position taken by the Government not to increase excise tax for cigarettes given that the illegal cigarette industry accounts for 64.5% of total market consumption.

"An increase would have resulted in driving more consumers to illegal cigarettes and illegal vaping, further impacting negatively the industry and supply chain, in particular the retailers who are already reeling from the current economic crisis.

"With the Covid-19 pandemic pressuring all sectors of our economy, we hope the Government will fast track the proper enforcement of laws and implementation of various key anti-illicit tobacco measures to better address the situation. Any recovery of lost tax revenues by Putrajaya will also help the government financially," he said. - DagangNews.com