WHENEVER there is talk of the country’s “thriving” illicit business, I often hear the comment, “the government could stop it if it wanted to”. This is the general public’s perception of the efforts made by enforcement agencies to halt, particularly, trade in contraband and counterfeit cigarettes, beer and liquor.
It was commendable of the Finance Minister to affirm in his budget speech that efforts to counter the distribution of illicit cigarettes will be increased to stop the leakage of about RM1 billion a year in taxes. While he did not touch on contraband and counterfeit alcoholic beverages, the recent amendment to the Customs Act 1967 that increased penalties for smuggling cigarettes and liquor reaffirms the serious intent to cut down on the loss of government revenues to illicit trade.