KOTA BARU, June 17 — The illegal cigarette trade is causing the government to lose about RM2.5 billion in tax revenue last year, National Kenaf and Tobacco Board chairman Datuk Mohd Adhan Kechik said. 

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 at a talk on kenaf plant (one of the allied fibres of jute) here last night. 

He said the situation could perpetuate illegal cigarette smuggling, causing the government to lose tax revenue. 

Mohd Adhan, who is also Bukit Bunga assemblyman, said security surveillance at the border should be stepped up to combat smuggling of illegal cigarettes.  — Bernama