KUALA LUMPUR: British American Tobacco (Malaysia) Bhd (BAT Malaysia) views the additional measures announced in the 2023 Budget to address cigarette smuggling is a step in the right direction.

BAT Malaysia managing director Nedal Salem said this move will further strengthen efforts in combatting the tobacco black market which is still persistently high where 56.1 per cent of cigarettes sold in Malaysia are tax-evaded products.

"This will help to address revenue leakages where currently the loss stands at RM5 billion annually," he said in a recent statement.

On Friday, the finance minister said that the government remains committed to addressing revenue leakages from cigarette smuggling and announced tightening controls on the importation of cigarettes.

This will be done via the introduction of a single-entry point policy in the northern region and enhancing controls at landing points including private jetties.

In addition, the finance minister also announced special rewards scheme for enforcement to stop smuggling activities.