Do Malaysians want tougher action on tobacco smuggling?

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Malaysians Desire Urgent Action Against the Tobacco Black Market

Malaysians are calling for immediate and decisive action to combat the escalating tobacco black market. Public sentiment indicates a strong preference for a comprehensive strategy that combines enhanced enforcement measures with significant reforms to the existing excise tax structure. This demand stems from the persistent growth of illicit tobacco sales, which continue to impact legitimate businesses and potentially public revenue.
Public Calls for Stronger Enforcement

The feedback gathered through BAT Malaysia's "Stop the Black Market" campaign reveals a clear public desire for more robust enforcement initiatives. This suggests that Malaysians believe increased efforts by authorities are crucial to disrupt the operations of illegal tobacco traders and reduce the prevalence of contraband products. The campaign aimed to solicit opinions on the crisis, highlighting the public's engagement with the issue.
Support for Structural Excise Reform

Beyond intensified enforcement, a significant portion of the Malaysian public advocates for structural changes to excise policies. This indicates a recognition that the current taxation system may be contributing to the attractiveness of the black market. Implementing reforms in this area is seen as a vital component of a holistic solution to address the root causes of illicit trade.
Growing Illicit Market Despite Efforts

Despite increased enforcement activities throughout the year, the tobacco black market continued its upward trajectory, reaching 64.5 per cent during the third quarter under review. This persistent growth underscores the scale of the challenge and the need for more effective strategies. The legal domestic industry has seen its performance overshadowed by this expanding illicit trade.
Opportunity for Government Leadership

BAT Malaysia views the upcoming Budget 2021 as a critical juncture for the government to demonstrate leadership and a collective will to tackle the tobacco black market. The company suggests that the budget presents an opportunity to introduce broader solutions, including strategic policy shifts and necessary taxation reforms, to effectively address the crisis.

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Do Malaysians want tougher action on tobacco smuggling?

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