KUALA LUMPUR, Oct 25 — The Pakatan Harapan (PH) pact would declare a "war” on smugglers in its alternative Budget 2018 unveiled today.

It proposed to raise the taxes on alcohol and tobacco products, thereby increasing national revenue by RM3.49 billion.

"Pakatan Harapan has the political will to declare war on smuggling, as such our import and excise duties on sin taxes is projected to increase by RM3.49 billion,” it said.

The federal Opposition pact alleged that alcohol and tobacco products have been undertaxed in the country due to widespread corruption, resulting in an annual loss of RM2 billion.

"We realise that under-declaration and corruption is rife in alcohol and tobacco trade. Losses to the government in terms of import duties and excise and duties amount to an estimated RM2.40 billion each year,” the alliance of PKR, DAP, Parti Amanah Negara and Parti Pribumi Bersatu Malaysia said in their proposed Budget 2018.