Malaysia: Cigarette Smuggling Cost Govt RM2bil in Tax up to Sept

Source from:  The Star Online  10/18/2013

The government lost almost RM2bil in tax collection between January and September this year due to cigarette smuggling.

 
The director-general of the Anti-Smuggling Unit (UPP), Datuk Abdul Rahim Ismail, said the amount was based on a study carried out by a cigarette manufacturer British American Tobacco (BAT) this year.

"The demand for smuggled cigarette is rising following the 14 per cent increase in the price of cigarettes recently as the low and medium-income groups cannot afford to buy cigarettes which have been taxed.

"Smuggled cigarettes receive strong demand from these groups because of the cheap price and can be bought for as low as RM2.50 per packet of 20," he told reporters here. Enditem