Illicit tobacco trade costing Asia-Pacific govts US$14.85bil tax loss, says study

Illicit tobacco trade is costing Asia-Pacific governments an estimated US$14.85 billion in foregone tax revenue, according to a new study by the Center for Market Education. Malaysia is estimated to lose US$775 million annually due to illicit tobacco trade, which exceeds the amount collected from tobacco taxation. The study highlights that tobacco tax collection amounts to US$30.98 billion, while estimated revenue lost to illicit trade reaches US$14.85 billion, indicating that for every US$100 collected through tobacco taxation, almost another US$48 is lost due to consumption outside the legal and taxable market.

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