KUALA LUMPUR: A tobacco company today highlighted the continued sale of illegal tobacco and nicotine products, questioning the government’s enforcement of laws pertaining to the matter.
JTI Malaysia managing director Cormac O’Rourke cited the latest findings of the Illicit Cigarette Study (ICS) by The Nielsen Company, which saw 153,000 discarded cigarette packs collected from streets and rubbish bins throughout the year and analysed for local tax stamps and authentic packaging, among others.
He said the ICS found a 1.7% increase in the consumption of illegal cigarettes from March to May this year, compared to the same period in 2018.
This translates to 2.8 billion illegal cigarette sticks between March and May this year, 7.4% of which bore fake tax stamps.
At a press briefing today, he said JTI estimates that 10% of smokers in the country use vape products. Based on current laws, he added, all vape products containing nicotine are illegal.
While the sale of nicotine products is regulated by the Poisons Act 1952, O’Rourke said JTI had been informed by the government that no licence has been issued by the health ministry for any vaping products.
“Is the health ministry confused about its own laws that it thinks it needs further laws to deal with illegal nicotine products?” he said.
The ministry previously said it would develop a new law to control tobacco, vape products and shisha.
O’Rourke said JTI estimates from its own checks and tests that about 90% of vape products contain nicotine but are still widely sold in shops as well as online.
JTI also estimates that the illegal cigarette and vaping industry is costing Putrajaya about RM6 billion a year in taxes.
“Why are they (health ministry) failing to act?” he added. “They have enforcement officials.”
He urged the government to step up its enforcement, saying it must take the issue seriously.
He recommended several measures including placing a minimum three-year moratorium on excise duties for tobacco products and the establishment of an independent body to lead a special task force to tackle the issue.
He also called for a ban on the transhipment of tobacco products throughout the country.
“Products come through the port in containers purportedly for onward shipment to other countries. They leave the port but not the country,” he said.
Alternatively, he said, the government could collect tax on the products upfront and refund the shipping companies when they leave the country.
“Malaysia is in the grip of corruption,” he said, adding that there is otherwise no way that containers of illicit cigarettes can enter the country.
“The Pakatan Harapan manifesto promised to tackle illegal cigarettes. But a year on, it is still unresolved.”
When asked whether the company would consider leaving the country if the problem remains unresolved, O’Rourke said he hoped this would not happen.
“But the reality is that with the magnitude of this problem and the industry deteriorating at the rate that it is, we have to consider all things about our level of investment on an ongoing basis.
“This has been a devastating number of years for the tobacco industry in Malaysia,” he said, adding that this had been the case since 2015. - FMT
“continued sale of illegal tobacco and nicotine products, questioning the government’s “
ReplyDeleteNow we know who is behind the govt to curb ecigarate.