Tuesday, April 25, 2006

Smuggling of Cigarettes. Why?


What is smuggling actually??

We have heard about it in the news, on tv..and even from people on the street.
Have you ever thought, why do people smuggle?
It definitely had to do to the things we learnt in class before.
In a layman's language, smuggling means getting goods from a foreign without going through the customs in which taxes/duties had to be paid.

That's why prices of cigarettes, alcohol are expensive as part of the price we pay for goes to the government as taxes/duties.

Smuggling means the avoidance of paying taxes/duties but sellers still charge a premium( a little lower compared to market prices) on their prices, giving them a higher profit margin.


There was acase which was busted yesterday at Pontian

PONTIAN: Marine police here nabbed three Indonesians and seized RM120,000 worth of smuggled cigarettes after a 30-minute high speed chase.

Southern Region Marine Police deputy chief Supt Omar Dawam said upon inspection of the longboat, police discovered 1,500 cartons of Marlboro cigarettes and 700 cartons of Gudang Garam Suria cigarettes.
Three Indonesian men were also detained.

“The cigarettes are worth about RM120,000,” said Supt Omar



http://www.thestar.com.my/news/story.asp?file=/2006/4/25/nation/14050540&sec=nation

2 comments:

Anonymous said...

i think its bcoz...when they smuggled something...they will not have to tax...so they save money there...and when they sell it to the people..with normal price..they will get more profit..

Anonymous said...

i think its bcoz...when they smuggled something...they will not have to tax...so they save money there...and when they sell it to the people..with normal price..they will get more profit..