Illicit Tobacco Weakens Border

The illegal tobacco market does damage that goes far beyond the loss of excise duties and sales taxes. Criminal gangs prosper from the sale of illegal tobacco and this spreads further illegal activity within Malaysia, encouraging corruption and discouraging legitimate business practices*. This impacts the lives of all Malaysians.

Illegal tobacco consumption presents several problems**, including:

  • Undermining its health agenda, as total cigarette consumption has actually increased since 2015’s shock increase in excise duty, driven by the growth of the unregulated illegal tobacco sector.
  • Depriving the government of tax revenues, and so curbing its ability to deliver essential services and valuable social programmes.
  • Funding further illegal activity—particularly corruption—in Malaysia.
  • Discouraging legitimate business operations.

BAT Malaysia believes now is the time for a national discussion on how to stop the black market.

With Stop the Black Market, BAT Malaysia wants to start a debate on the solutions needed to tackle the black market problem once and for all. The first step is to understand the extent of the problem.

Here’s how you can help:

  1. Take the Stop the Black Market survey questionnaire.
  2. Fill in your details to redeem your Touch ‘n Go e-Wallet Reload PIN.


Sources:

*Nielsen. Illicit Cigarette Study (ICS) in Malaysia, 2019
**Oxford Economics. The Economics Of The Illicit Tobacco Trade In Malaysia. 2019

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