Customs Dept ups efforts to curb revenue losses from ciggie, liquor smuggling

KUALA LUMPUR – The Royal Malaysian Customs Department is intensifying efforts to curb losses of national revenue due to cigarette and liquor smuggling activities.

In fact, Deputy Finance Minister l Mohd Shahar Abdullah said numerous raids; land and air patrols; roadblocks; inspections of ships, boats, and land vehicles; and checks at cigarette and liquor outlets have been carried out by the department.

“As of September this year, Malaysia recorded 2,518 cases of contraband cigarettes and liquor seizures worth RM41.43 million with unpaid taxes of RM281.69 million,” he said in reply to Nga Kor Ming (Teluk Intan-PH), who wanted to know the total amount of losses borne by the country as a result of smuggling activities – including liquor and cigarettes.

Shahar said throughout last year, the Customs Department recorded 2,842 contraband cigarette and liquor seizures worth RM97.34 million with unpaid taxes of RM707.14 million.

He said amid the Covid-19 pandemic, efforts to curb smuggling activities continue to be intensified – such as the Portcullis operations, integrated Customs-Marine ops, Ops Benteng, and Ops Pacak in locations already identified as hotspots.

“Malaysia has also established international cooperation by sharing intelligence information and participating in cigarette-related international operations,” he said.

Shahar said stern action – including tighter control on the transhipment of contraband cigarettes via national ports – had been implemented so that Malaysia is not seen as the transhipment hub of contraband cigarettes.

“We have limited cigarette transhipment activities at selected ports, and we only allow five of them – the North and West Ports in Klang, Tg Pepas Port, Senari Port, and Sepanggar Port.

“We impose taxes on imported cigarettes for the purpose of re-exporting them, duty drawbacks, we do not refund 100% of the taxes. We only refund nine-tenths. This stern action is one of the government’s serious attempts to plug tax revenue leakages, due to the abuse of facilities at duty-free shops that is difficult to control,” he said. – Bernama, December 6, 2021