Tobacco industry insiders in Cambodia have claimed that around 50 per cent of tobacco products on sale in Cambodia are illicit, meaning the government missed out on more than $38 million in revenue this year.
The industry representatives presented a report on the tobacco situation in Cambodia last week, showing many of the cigarette packets put on sale at marts and other retailers had no health warnings.
“Cigarette packets that have no warning signs not only fail to discourage young people from trying tobacco, but make them believe that smoking is ok for their health as they did not see health warnings on the packet. It also makes them believe that the legal ones with warning signs are more dangerous,” said one industry representative.
The representative encourages all stakeholders to join hands in combating illicit products, including tobacco, as it could bring more tax revenue to the government, create more jobs, and reduce crime and corruption.
In September, the Consumer Protection Competition and Fraud Repression Directorate-General (CCF) of the Ministry of Commerce reported that they had received many complaints regarding illicit and trademark-infringing tobacco products, committed by individuals who circulated and distributed them in Cambodia.
The CCF said the action violated the Law on Marks, Trade Names and Acts of Unfair Competition; the Law on the Management of Quality and Safety of Products, Goods and Services; the Law on Consumer Protection; and the Law on Competition; as well as other national and international laws and regulations currently in force.
“Such activities may adversely affect consumer well-being, cause a loss of national economic benefits, and undermine the confidence of legitimate investors conducting business in the Kingdom of Cambodia,” said the CCF.
CCF instructed the owners of companies, traders, merchants and distributors of tobacco products to comply with the laws and legal regulations in force. Failing to abide by the laws and regulations will result in legal action, it warned.
