MCTC: Tobacco Tax Hike and Strict Enforcement Crucial to Curb Smoking Habits

KUALA LUMPUR – The Malaysian Tobacco Control Council (MCTC) has identified an increase in tobacco excise taxes as one of the most effective measures to reduce smoking rates, emphasizing that comprehensive enforcement is vital to achieving the nation’s “Endgame 2045” goal.

MCTC President, Professor Dr. M. Murallitharan, stated that fiscal measures are among the most powerful public health policy instruments, particularly for discouraging smoking among youth and low-income groups who are highly price-sensitive.

Strengthening Public Health Through Fiscal Policy

“For price increases to be truly effective and not manipulated by the illicit market, comprehensive and coordinated enforcement must be the foundation of its implementation,” Dr. Murallitharan said in a statement on Wednesday.

The council noted that tobacco taxes in Malaysia have not been raised since 2015. A revision of this fiscal policy is seen as urgent to meet the 2045 target of ending smoking product use. This move aligns with Malaysia’s commitment to the World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC), ratified by the country in 2005.

Addressing the Illicit Trade Myth

Responding to concerns that higher taxes might fuel cigarette smuggling, Dr. Murallitharan cited World Bank reports indicating that illicit trade is more closely linked to weak enforcement and governance rather than tax rates alone.

To combat this, MCTC urged the government to:

• Ratify the Protocol to Eliminate Illicit Trade in Tobacco Products to strengthen licensing mechanisms.
• Implement robust tracking and tracing systems.
• Enhance cross-border cooperation in line with Article 15 of the FCTC.

The Need for Coordinated Enforcement

Currently, tobacco control functions are fragmented across several agencies, including the Ministry of Health (MOH), the Royal Malaysian Customs Department, and the National Kenaf and Tobacco Board. MCTC argued that this division of jurisdiction often leads to overlaps and resource constraints.

The council suggested that coordinating enforcement powers at the local authority level, equipped with clear mandates and sufficient resources, would be a significant step forward. Without a solid enforcement base, the public health benefits of a tax hike could be undermined by the illegal market.