MCTC calls for stronger enforcement and tax hikes to combat illicit cigarettes undermining GEG target
PETALING JAYA: Smuggled cigarettes sold at low prices remain the main obstacle to achieving the Generational Endgame (GEG) target by 2045, according to the President of the Malaysian Council for Tobacco Control (MCTC), Prof. Dr. Murallitharan Munisamy.
He said that increasing tobacco excise taxes is among the most effective measures to reduce smoking prevalence, particularly among youths and low-income groups who are more price-sensitive.
Although higher taxes may prompt some consumers to turn to cheaper illicit cigarettes, Murallitharan said that the tobacco industry frequently overstates the extent to which tax increases drive smuggling.
Citing the World Bank report titled Confronting Illicit Tobacco Trade: A Global Review of Country Experiences, Murallitharan said that illicit trade is more closely linked to weaknesses in enforcement and governance.
“Therefore, MCTC stresses that tax increases must be implemented in tandem with strengthening supply chain control and monitoring systems. Malaysia should also promptly ratify the Protocol to Eliminate Illicit Trade in Tobacco Products, which aims to eliminate all forms of illicit trade in tobacco products in accordance with Article 15 of the World Health Organization Framework Convention on Tobacco Control (FCTC).
“Ratification will strengthen licensing mechanisms, track-and-trace systems, and cross-border cooperation,” Murallitharan said in a statement today.
He also suggested coordinated enforcement in dealing with tobacco products to ensure streamlined monitoring, as currently the sale and management of tobacco products are regulated by different bodies, including the National Kenaf and Tobacco Board, the Health Ministry, the Royal Malaysian Customs Department, and the Solid Waste Management and Public Cleansing Corporation (SWCorp).
“This fragmentation of jurisdiction leads to overlaps and resource constraints. MCTC proposes the coordination of enforcement powers at the local authority level (PBT), with a clear mandate and adequate resources.
“This integrated approach will reduce tax revenue leakages; combat non-duty-paid products; improve retailer compliance; and strengthen the effectiveness of price increase policies,” he added.
He said that to ensure the 2045 target is achieved, MCTC calls for regular and progressive increases in tobacco excise taxes and the immediate ratification of the Protocol to Eliminate Illicit Trade in Tobacco Products.
Murallitharan also urged coordination and strengthening of enforcement at all levels and the protection of public policy from tobacco industry interference in line with Article 5.3 of the FCTC by enacting Mandatory Guidelines for all officials involved in public policy formulation.
“Malaysia has made an international commitment to protect future generations from the harms of tobacco. A tax increase is a critical step — but the foundation of its success lies in comprehensive, consistent, and integrity-driven enforcement.”
GEG reffers to tobacco control strategy that prohibits the sale, purchase, and possession of tobacco and vaping products to individuals born in 2007 and later which was incorporated into the Control of Smoking Products for Public Health Act 2024.
The Sun Malaysia
