Malaysia’s plan to raise cigarette excise taxes aims to curb smoking and boost revenue, but without tougher enforcement, it could backfire. Illicit cigarettes already make up over half of consumption, costing the country RM5 billion yearly. Sharp price hikes push smokers, especially from lower-income groups, toward cheaper, untaxed illicit products. Most illicit packs lack tax stamps or carry counterfeits, while smugglers enjoy high profits and low risks. Experts warn that without cracking down on illegal trade alongside tax increases, Malaysia may lose more revenue and fail to improve public health.
