Pros And Cons Of Contraband Cigarettes

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Contraband cigarettes are cigarettes that are smuggled into Malaysia from neighbouring countries like Indonesia and the Philippines. These contraband cigarettes are much cheaper than legal cigarettes sold in the market. Statistic shows that 23% of Malaysians smoke. Most of the smokers in Malaysia often prefer buying contraband cigarettes than legal cigarettes. As Malaysia’s main source of income comes from taxation , the majority of people buying contraband cigarettes might affect Malaysia’s economy . According to the Malay mail, In April 2016, Johor customs has seized contraband cigarettes worth more than 23 million ringgit. 221,00 cartons of contraband cigarettes were seized by the police after carrying out raids since early April. This shows that , how well supplied Malaysia is with contraband cigarettes and how the guards are not doing such a good job at controlling the trucks that are passing the border and boats coming in. According the Borneo Post, smuggled cigarettes and alcohol into Malaysia has caused a big loss in revenue. The Borneo based news company states that smuggled cigarettes has caused Malaysia to lose RM 4 billion …show more content…

Despite having all the advantage of a geographically good location, there are also disadvantages and one of them is smuggled cigarettes from it’s neighbours. Moreover, Malaysia is climbing the Gross Domestic Product ranking table every year but at a very slow rate so it is important for the Malaysian government to take care of smuggled goods problem especially contraband cigarettes in order for them to have a better Gross Domestic Product score. In addition with the increasing amount of smokers in Malaysia also including the large amount of foreign workers coming in every year, the government should also control the demand of cigarettes

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