KUALA LUMPUR, Nov 6 ― Japan Tobacco International Berhad (JTI Malaysia) said today it welcomes the announcement made by the government in Budget 2021 to tackle the illicit cigarette trade. 

In a statement today, JTI Malaysia managing director Cormac O’Rourke said enforcement is key in tackling the high level of domestic illicit cigarettes trade that has resulted in a loss of revenue to the nation.

"We welcome the strengthening of the Multi-Agency Task Force (MATF) with the participation of the Malaysian Anti-Corruption Commission (MACC) and the National Financial Crime Centre (NFCC). We believe this task force is the right vehicle to combatting the black economy.”

"We are particularly pleased with the announcement that cigarette trans-shipment activities will be limited to certain ports only. We have called for a ban on trans-shipment of tobacco products time and again, as this loophole has been exploited for years.

O’Rourke also voice his approval that the government had decided not to increase excise tax for cigarettes given that the illegal cigarette industry accounts for 64.5 per cent of the total market  consumption. 

"An increase would have resulted in driving more consumers to illegal cigarettes and illegal vaping, further impacting negatively the industry and supply chain, in particular the retailers who are already reeling from the current economic crisis,” he said

Earlier today, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz announced that the government will be freezing the issuance of import licence for cigarettes and imposing an excise duty on electronic, non-electronic cigarette devices and vape liquids beginning January 2021.

He also said the government will tighten licence renewal for the importing of cigarettes by revising terms, including the introduction of an import quota.