Don’t dismiss viable solutions to illegal cigarette trade, says JTI

PETALING JAYA: An international tobacco manufacturer has asked the Health Ministry not to dismiss viable solutions to address the illegal cigarette trade in the country and start taking effective action to address the problem.

Health Minister Datuk Seri Dr S. Subramaniam has said the government would not support the proposal by the tobacco industry to reintroduce kiddie pack cigarettes (pack of 10 sticks) to combat the scourge of contraband cigarettes.

"The Health Minister has rightly pointed out that over 52% of smokers in the country are smoking cheap illegal cigarettes and this is a very alarming situation, and it has been happening for almost two years now, with no signs of improvement," JT International Berhad (JTI Malaysia) Managing Director Guilherme Silva said in a statement.

"While the Royal Malaysian Customs have been taking actions to enforce against illegal cigarette trade, this is a national issue that requires intervention from all ministries and law enforcement agencies including the Health Ministry to start taking aggressive enforcement stance on its mandated minimum cigarette price regulations."

Silva added that The Control of Tobacco Product Regulations currently states that a pack of cigarettes cannot be sold below RM10. However, given that all illegal cigarettes are sold below the mandated minimum cigarette price ruling, this is an area that the Health Ministry should start taking action to help curb the scourge of illegal cigarette trade in Malaysia, he said

"The minimum cigarette price ruling can only be enforced by the Health Ministry and no other enforcement body. Therefore, the Health Ministry should take more actions to stop illegal cigarette trade from proliferating," Silva said.

On the proposal of small packs, he urged all parties to view the small pack proposal as a unique solution to address illegal cigarette trade in Malaysia – a problem that is costing the country RM4 billion in tax revenues and other associated social problems.

"Dismissing small packs proposal, especially in the absence of any other effective solutions, would only worsen the illegal cigarette trade," he said. "The fact remains that the price of legal cigarettes is high and this causes smokers to switch to cheap and easily available illegal cigarettes.

"Given the huge price gap between legal and illegal cigarettes, the proposal creates a solution to close the price gap while maintaining the same price and tax rate for every stick of cigarette in a 10-stick pack and 20-stick pack."