Market share of 36.7% ‧ ‧ government crackdown cigarettes British American Tobacco: Operators should not re-class tobacco tax case

Royal Malaysian Customs Authority disclosed earlier, Malaysia cigarettes accounted for 36.7% of the domestic cigarette market, so that the tobacco industry called on the Government to address market cigarettes and to take more effective measures against the proliferation of illicit activities.

Malaysia British American Tobacco (BAT, 4162, board of consumer goods group) managing director plot Kebaoweisi that the fight against illicit cigarettes, the government will soon announce the 2010's Budget should only modest growth rates, and strong law enforcement, heavier sanction cigarettes more dangerous action and awareness, are all effective action against illicit cigarette activities.

Among the 36.7% of smuggled cigarettes, 80% of Peninsular Malaysia, a year ago, Malaysia among the pack of cigarettes every 4, there is a package that smuggling of cigarettes, the current situation worse, that there is a pack of cigarettes every 3 package is cigarettes.

Product Kebaoweisi a statement that illegal cigarettes the tobacco industry has become the largest operator in Malaysia. In the first six months, legitimate tobacco market share of 11%, have been smuggling cigarettes away.

He said that almost all of the illegal cigarettes are smuggled from overseas, imported, counterfeit cigarettes does not appear local. Illegal use of foreign and domestic criminal organizations, large cigarette price gap for illicit cigarette activities.

He said many believe that will crack down on cigarette smuggling is only the legitimate cigarette makers, in fact, the impact is more deep, including the Government's annual loss of about 1.5 billion ringgit in revenue, if a good use of Fu 人民. Global government lost tax cigarettes, estimated to reach over 40 billion U.S. dollars annually.

"If the lack of effective response measures, cigarette smuggling activities of these materials will continue to grow, making them the Malaysian tobacco industry's biggest operators. The tobacco industry who hope that the Government is serious about implementing the tax increase due Ji Zhu Jian Fang Shi. Facts have proved that tax increase, with cigarette smuggling activities directly related to the new Singapore and Hong Kong is a good example. "

The growth rate of illicit cigarette activities tax

He said that since 2002, the tobacco industry increased the tax each year, one on the last 2 years of growth accounted for 50% of the peak of Dian Da Dao to the level of the tobacco industry to speed cigarette smuggling cigarettes to replace the legal status, but City did not increase overall consumption.

He pointed out that cigarette smuggling syndicate may make further use of the money funding other criminal activities. Mere monetary fine is not sufficient to curb illicit cigarette activities. When present, the Government is considering more stringent and imposed heavier penalties against smuggling of cigarettes, wholesalers, retailers and even consumers.

According to lead, cigarettes, nicotine and high levels of unknown substances, it will be more seriously affected the health risks of smoking.

He pointed out that the first quarter of 2009, the Government take the cigarettes by 76%. The government departments in tackling cigarette smuggling gratifying.