Parliamentarians turned their attention to a proposal in Budget 2005 to increase the price of cigarettes by a maximum of RM1.60 a pack.

Several argued that the higher excise duty may not only be detrimental to the thousands of families dependent on tobacco farming, but could also result in the entry of smuggled cigarettes.

Many among backbenchers and opposition parliamentarians shared these views and urged the government to reconsider the proposal, as it was unlikely to achieve the intended objective of discouraging smoking.

While presenting his budget speech last Friday, Prime Minister Abdullah Ahmad Badawi proposed that excise duty on cigarettes be increased from RM58 to RM81 per 1,000 sticks.

"I am afraid that with the tax being raised so much, there will be increased smuggling of cigarettes into the country," said Mohd Said Yusof (BN-Jasin).

He said that, unless there is strict enforcement by the customs department, cheaper alternatives would flood in as a substitute.

"Many cigarette importers now hire former customs officials, because they know the legal loopholes that allow cigarettes to be smuggled in," he said.

"I'm concerned that, due to ineffective enforcement, the country will be flooded with cheaper cigarettes."

Mohd Said also said the higher price of cigarettes may not necessarily discourage people from smoking, if Singapore is taken as an example.

"The price of cigarettes in Singapore is S$9 (RM18). Even with a price increase, there has been no decrease in the number of smokers. It has actually increased," he claimed.

Livelihoods affected

Abdul Ghapur Salleh (BN-Kalabakan) proposed that the government learn from the scenario in Sabah, where locals have shown a preference for smuggled Indonesian cigarettes sold for as low as RM1.50 per pack

"We have laws to address this, but enforcement is not adequate. Cigarettes that are highly taxed are not saleable...people buy cigarettes that are smuggled," he said.

"If there are claims that alcoholic drinks are flooding Labuan, there are enough (smuggled) cigarettes to burn the whole of Sabah."

Other MPs addressed the possible repercussion for tobacco growers if the proposal goes through.

Abdul Halim Abdul Rahman (PAS-Pengkalan Chepa) said about 25,000 people earn a livelihood from tobacco growing around Bachok, Kelantan, alone.

They earn some RM60 million a year, but this would be affected if cheaper cigarettes are imported from Cambodia, Burma, Laos and Thailand, he said.

Raja Ahmad Zainuddin Raja Omar (BN-Larut) said the tobacco growers could be subsidised through the higher tax on cigarettes.

"There is nothing wrong in studying (how to) compensate tobacco planters. It is not logical to eliminate tobacco growing since this would adversely affect the workers involved. So, why not let them benefit from the taxes instead?"