British American Tobacco (BAT) Malaysia and Philip Morris Malaysia have seen sharp decreases in sales which means less tax revenue for the government. Jack Bowles, the BAT managing director: "We hope that with increased enforcement, stricter penalties and a moderate and gradual tax increase, the illegal cigarette menace can be addressed."
Illicit tobacco trade a global problem. In 2006 approximately 5,767 billion cigarettes were sold globally in 2006. It is estimated that the global illicit cigarette trade was 10.7% of total sales, or 600 billion cigarettes, in 2006. Illicit tobacco trade could represent a loss to government revenue of $US 40 to 50 billion annually. (How big was the global illicit tobacco trade problem in 2006?)
Reference: Tobacco firms call for greater enforcement by B.K. SIDHU, the Star Online, 8/23/2008 and Tobacco in MalaysiaEuromonitor, 2/2008.
In 2007 the smoking population in Malaysia (total population 27.5 million - 2008)continued to increase (estimated six million about 8% women) mainly due to the young.
WHO Framework Convention on Tobacco Control (FCTC) - the global anti-tobacco treaty.
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