Tax stamps can be ‘kawtim’

SYNDICATES dealing with smuggling contraband cigarettes usually have “insiders” within an enforcement agency to ensure they could operate without being detected by the authorities.

With really no holds barred when it comes to the depths of bribery and corruption, some syndicates are even purchasing official tax stamps to help mask their contraband products.

The Harian Metro Special Squad was told that the syndicates would

kawtim (settle) or bribe officers and heads of the units as inducement for the latter to turn a blind eye to their smuggling activities.

These “settlements” are bribes amounting to hundreds of thousands of ringgit, supplied to errant enforcement officers every month throughout their business operation.

Errant enforcement officers will continue enjoying their “supplementary” income when they are transferred to other states or upon retirement as the syndicates continuously hand out the bribes to them.

Payout amounts vary based on ranks and seniority of the agents and are often remitted by cash or deposited into their bank accounts. Not stopping at cash incentives, cartels offer additional “perks” or “entertainment packages” to enforcement officers, which included sponsored trips to Hatyai or Danok in Thailand, where alcoholic beverages, karaoke sessions and even women are provided.

In return, these officers are expected to turn a blind eye to the cartel’s activity at key border crossings and tip them off when an enforcement operation is about to take place.

Shockingly, some errant officers are willing to sell cigarette tax stamps stickers for RM1 each.

There are 3,000 stickers in every reel of tax revenue stickers, and these cartels have no qualms in buying more than one reel at one go. These revenue tax stamp stickers can only be issued by the Customs Department to signify that the duty for the cigarette has been paid.

Hence, integrated and concerted efforts involving the Customs Department and other enforcement agencies are needed to plug loopholes and leakages that have resulted in illegal cigarettes flooding up to 60 per cent of the local market.

The biggest concern is when will the new government under Pakatan Harapan take decisive action and come up with measures to curb smuggling activities that continue to spur the “underground” economy.

If left unchecked, this illicit activity could jeopardise not just the country’s economy but also its security and reputation.