Stricter moves to curb smuggling activities

KUALA LUMPUR: The Customs Department is intensifying efforts to curb losses in national revenue due to cigarette and liquor smuggling activities.

Deputy Finance Minister l Shahar Abdullah said numerous raids, land and air patrols, roadblocks, inspection of ships, boats, land vehicles as well as cigarette and liquor outlets have been carried out by the department.

“As of September, 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 (PH-Teluk Intan), who wanted to know the amount of losses to the country as a result of smuggling activities.

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

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

“Malaysia has also established international cooperation through the sharing of intelligence and participating in cigarette-related international operations.”

Shahar said stern action, that included tighter control on transhipment of contraband cigarettes via national ports, had been implemented so that Malaysia was not used as a transhipment hub of contraband cigarettes.

“We have limited cigarette transhipment activities at selected ports and we only allow five ports, namely the North and West Ports in Klang, as well as the Tanjung Pepas Port, Senari Port and Sepanggar Port.

“We impose taxes on imported cigarettes for the purpose of re-exporting them. We do not refund 100% of the taxes. We only refund ninetenths. This stern action is one of the government’s attempts to plug tax revenue leakage due to the abuse of facilities at duty-free shops, that are difficult to control,” he said.