KUALA LUMPUR, Feb 18 — Increasing tobacco excise duties is among the most effective measures to curb the smoking habit, alongside comprehensive enforcement to ensure the “Endgame 2045” goal of reducing the use of smoking products can be achieved, says the Malaysian Council for Tobacco Control (MCTC).
Its president, Prof Dr Murallitharan Munisamy, said tax increases were among the most effective public health policy instruments to reduce smoking, particularly among the youth and low-income groups who were more price-sensitive.
“However, to ensure price hikes are truly effective and not manipulated by the illicit market, comprehensive and coordinated enforcement must be the primary foundation of their implementation,” he said in a statement today.
He said the fiscal measure was in line with Malaysia’s commitment to the World Health Organisation Framework Convention on Tobacco Control (FCTC), which was inked on Sept 23, 2003, and ratified on Sept 16, 2005.
According to him, various global studies showed that price increases through taxation were capable of reducing smoking initiation rates among adolescents, encouraging existing smokers to quit, and reducing consumption among high-risk groups.
MCTC also added that taxes on tobacco products had not been raised since 2015, and therefore, a review of the fiscal policy was urgently required to achieve the “smoking product endgame” target by 2045.
Commenting on concerns that tax increases would lead to a rise in smuggling, he said a World Bank report titled ‘Confronting Illicit Tobacco Trade: A Global Review of Country Experiences’ found that illicit trade was more closely linked to weak enforcement and governance rather than tax rates alone.
In this regard, MCTC urged the government to ratify the ‘Protocol to Eliminate Illicit Trade in Tobacco Products’ to strengthen licensing mechanisms, track-and-trace systems, and cross-border cooperation in accordance with Article 15 of the FCTC.
Currently, tobacco product control functions are handled by several agencies, including the National Kenaf and Tobacco Board for retail licensing, the Ministry of Health for smoking and advertising bans, and the Royal Malaysian Customs Department for duty controls and tax marking.
Also involved is the Solid Waste and Public Cleansing Management Corporation in terms of waste management, including that of cigarette butts.
According to MCTC, this fragmentation of jurisdiction led to overlaps and resource constraints, so coordination of enforcement powers at the local authority level with a clear mandate and sufficient resources should be considered.
“Without a solid enforcement foundation, the positive impact of tax increases would be eroded by the illicit market,” he said. — Bernama
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