Malaysia: ''No Decision to Introduce Licensing for Tobacco Industry''

Source from:  The Star 12/30/2015

No decision has been made to introduce licensing for the production and distribution of tobacco and cigarettes in the country.

The Plantation Industries and Commodities Ministry said it would continue working with the National Kenaf and Tobacco Board (LKTN) on consultations with interested parties on the matter.

"The ministry and LKTN have conducted several consultation sessions with various parties since 2011.

"The latest session was held on June 23, 2015, and was attended by representatives from the tobacco industry, wholesalers and retailers, including the Malaysia Singapore Coffee Shop Proprietors General Association," it said in a statement.

Some 20,000 small-time and sundry shop cigarette vendors were up in arms about an order by the ministry asking them to register and pay a fee starting next year to sell the products.

Malaysia Singapore Coffee Shop Proprietors General Association deputy honorary secretary Lim Cheng Hui said many members were unaware of such a ruling, which the ministry had informed was done to regulate the tobacco industry.

Lim, who is also the association president for Kelantan, had said that all business entities were required to register between January and June next year and pay a fee.

He said the fee was believed to be in the hundreds of ringgit and, if enforced, would force small-time traders to close shop as it would no longer be profitable for them.

The charges, he said, was in addition to the various permit fees that they had to pay to the local council.

"Under the National Kenaf and Tobacco Board Act, those who break the law can be fined up to RM250,000, jailed three years or both if found guilty.

"Cigarette smugglers will flourish if the new ruling is enforced," he claimed. Enditem