The illegal cigarette trade has caused the Malaysian government to lose about myr2.5 billion ($615.824 million) in tax revenue last year, according to Mohd Adhan Kechik, chairman of the National Kenaf and Tobacco Board.
He said the figure was arrived at based on information received from tobacco industry players.
“The smuggling of illegal cigarettes is said to be due the exorbitant cigarette prices here, which is among the highest [in the region] besides Singapore and Brunei.
“However, cigarettes are cheaper in countries like Thailand, Cambodia, Vietnam and Indonesia,” he told reporters in Kota Baharu last night.
He said the situation could perpetuate illegal cigarette smuggling, causing the government to lose tax revenue.
Mohd Adhan said security surveillance at the border should be stepped up to combat smuggling of illegal cigarettes.