Customs Dept to implement new strategies to curb cigarette smuggling

In its efforts to smoke out rampant smuggling of contraband cigarettes, the Royal Malaysian Customs Department (JKDM) has developed several new strategies for implementation next year.

Deputy director-general (enforcement and compliance) Datuk T. Subromaniam believes the implementation of the new strategies would reduce smuggling cases by up to 50 per cent.

"Every year, the collection of customs taxes from cigarettes is about RM4 billion but at the same time, rampant smuggling and sale of contraband in the country has left us concerned.

"In the past, there were various attempts to combat smuggling but in vain. Hence from next year, we will begin to change the strategy to ‘outcome base’ rather than ‘output base’ as it is today," he told reporters after launching the Penang-level 'Ops Pacak' here Monday.

'Ops Pacak' is a special operation which was launched on a massive scale since last year, to combat smuggling and sale of contraband cigarettes and liquor.

Subromaniam said the smuggling and sale of contraband cigarettes had caused the government to incur losses in tax revenue amounting to billions of ringgit every year.

In the meantime, JKDM is in the midst of discussions with ports and free zone authorities to check on the legitimacy of existing companies registered with them to combat 'fly-by-night’ companies as more were detected to have smuggled cigarettes into the country.

"The problem with the unregistered companies is that JKDM is unable to take legal action against them as they do not exist. So, I believe the problem can be dealt with effectively, with cooperation of the port authorities," said Subromaniam. -- Bernama