Law expert: No minimum price enforcement reason for high illegal ciggie trade

THE Health Ministry (MOH) should focus on enforcing its own regulations and penalise those selling cigarettes below the minimum legal price before introducing prohibition type laws against smoking, said a well-known legal columnist in a statement today.

According to Arunachala Research & Consultancy Sdn Bhd principal consultant R. Paneir Selvam, MOH raised the minimum retail price of cigarettes to RM12 per pack of 20 sticks in Nov 2020 from RM10 per pack under Regulation 8C (1) of the Control of Tobacco Product Regulation 2004.

“Illegal cigarettes that are widely sold between RM4 to RM8 per pack are clearly contravening the minimum price regulations and MOH should exercise its enforcement power to seize those illegal cigarettes and take legal action against those who break the law,” he commented.

R. Paneir Selvam

“Under the same Control of Tobacco Product Regulations 2004, any individuals who are found guilty under the law can be fined RM10,000 or sentenced to jail for a minimum of two years or both.”

Paneir further said that MOH could be more proactive in enforcing its own minimum price regulations for cigarettes rather than relying on other enforcement agencies like the Royal Malaysian Police (PDRM) and the Royal Customs Department to carry out enforcement duties against illegal cigarettes.

“A cohesive effort among government ministries led by MOH and in close collaboration with enforcement agencies are required to tackle the severe illegal cigarettes problem that cost the Government RM5 bil annually in uncollected taxes, while at the same time negatively impacting our national health agenda,” he continued.

Paneir also opined that MOH could also take the bull-by-the-horns in compelling the Multi-Agency Task Force (MATF), which was formed to curtail the illegal cigarettes trade and pay closer attention to minimum price infringement to facilitate the ministry’s enforcement action through intelligence and personnel support.

According to Nielsen’s Illicit Cigarettes Study (ICS) in Malaysia 2021 report, the illegal cigarettes incidence at National Level has decreased by 6.5%, from 63.8% in 2020 to 57.3% in 2021.

Paneir also commented that MOH’s lack of will to enforce its own regulations on the minimum selling price of cigarettes might hinder its efforts to introduce laws that prohibit the sale of cigarettes to those born after 2005.

“A complex set of laws are required to effectively carry out this Generation End Game proposal, and questions will be raised on enforcement responsibilities, infringement of personal freedom of choice and the collection and tracking of personal information, as people purchasing cigarettes may be required to reveal more than their age,” he concluded. – April 1, 2022

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