M’sian Govt Has Lost RM2.5 Billion in Taxes to Fake Agents, Says Customs Dept

This is some pretty alarming stuff!

In a recent press conference in Sibu, Customs director-general Datuk Seri Subromaniam Tholasy stated that Malaysia reportedly lost a whopping RM2.5 billion in taxes in the past three years to unscrupulous shipping agents who use fake information in official documents in attempt to smuggle items.

According to The Star, about RM1.06 billion was lost on taxable items in 2017, with as much as RM731 million worth of items being smuggled into Malaysia.

Source: mmo

As for 2015, customs reportedly seized RM416 million worth of goods, resulting in losses of RM635 million. In 2016, RM447 million worth of goods were seized and losses totalled to RM854 million.

“The three top smuggling hot spots are Port Klang, Bukit Kayu Hitam and Sibu,” he stated at the press conference yesterday (27th December).

“The main culprits are forwarding agents, shipping agents and freight forwarders. While the number of errant companies is small compared to the total number of companies licensed, their activities are backed by syndicates.”

Source: the star

In efforts to reduce such losses from recurring, Datuk Seri Subromaniam stated that 20 forwarding agents that were allegedly involved in the illegal smuggling may have their licenses revoked next year, saying,

“They must bear responsibility. As forwarding agents, they should know who the importers are and what they are bringing into the country.”

“They should not just ‘wash their hands of the issue’ and claim they did not know the items imported in.”

Well, considering the alarming amount of losses in the past three years alone, let’s hope these measures help reduce the occurrence of illegal smuggling from fake agents!

Also read: Bank Negara Warns Malaysians to Beware of Fake Money Lenders