GMGF 5014 PUBLIC FINANCIAL MANAGEMENT

CIGARETTE EXTERNALITY

PREPARED BY:

1. MOHD KAMAL BIN NOR AZMAN SHAH (827431)

2. MUHAMMAD NASRUL NIZAR BIN ABD RAHMAN
(827428)
3. MUHAMMAD AJWAB BIN ANUAR (827429)
4. ROSNANI BINTI SHAHARUDDIN (829140)
 Smoking is a major negative externality activity in the world. Negative externality is

when the production or use of a product affects others. Someone may smoke in a public

area or in their car and they may not know it, but it impacts everyone around them. Others

can also will be affected smoke by smokers. Smoking has a major negative exterior because

it not only pollutes the world but will cause others to have long term effects as well. For

example, Ahmad is smoking in the car. His wife and kids are in the car too. The smoke will

give bad impact on the lungs of his family.

The negative externalities created by the utilization of these cigarettes make

significant medical issues buyers and more noteworthy antagonistic impacts on society.

From first January 2020, fines will be forced on the two smokers and proprietors of food and

eatery premises in view of the Akta Larangan Merokok 2020, this externality is a lot more

prominent. Without the Akta Larangan Merokok 2020, the public's authority will likely raise

public awareness on solid way of life rehearses and guarantee that individuals can

participate in a sound and enjoyable life.

Therefore, it is recommended that the price of a pack of cigarettes and the tax based

on tobacco products used to make cigarettes be increased drastically, thus making

cigarettes a luxury item and difficult for smokers to obtain. The proposed price and tax

increase on cigarettes is to put long-term psychological pressure on smokers in our country

so that they quit the habit and addiction of smoking. In addition to put psychological

pressure on smokers, the increase in cigarette prices and taxes can also be used as a source

of side income for our country. Given that there are millions of Malaysians who are still

addicted to cigarettes, the increase in prices and taxes on this commodity is expected to

further increase our country's source of income. This source of ancillary income can be used
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to fund various development and management projects in our country for years to come.

For example, highway, buildings for public use.

In order to maintain the health of the people of this country for the long term, it is

important that any substance or item that can invite addiction and lead to health problems

to our people such as cigarettes is given a continuous increase in prices and taxes every year

to put psychological pressure, especially in terms of financial burden against those addicted

to the use of the substance. The public is already aware of the dangers that come as a result

of smoking addictive activities, especially from a health point of view. The dangers that come

from this smoking activity will not only invite danger to the smoker himself, but also invite

danger to the people around who have to smell the smoke produced by the cigarette.

Many effort have been made by the public authority, particularly through the

Kementerian Kesihatan Malaysia (KKM) throughout the long term which has given schooling,

openness and attention to people in general with regards to the risks of smoking, for

example, through danger notices, for example, cigarette boxes and through the most

common way of working on the law. The government has also implemented a health

promotion strategy through the mass media, namely the anti -smoking campaign "TAK NAK"

in 2004. The mission was intended to bring issues to light with regards to the risks of

smoking, urge smokers to stop smoking, and keep up with the craving of non-smokers

(particularly young people to don't begin smoking). Be that as it may, the work resembles "

pouring water on yam leaf" since there are as yet a significant number of our kin who are as

yet attached to smoking. What is also a concern, this smoking addiction is also seen to have

begun to spread among young people in our country, including those who are still in school.

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 In 2018, an aggregate of 68, 321 auxiliary school understudies were distinguished

smoking through the KKM screening through the Smoke-Free Dental Health program. The

level of auxiliary school understudies who smoke is identical to 3.7 percent of the 1.9 million

school understudies separated the Smokeless Dental Health 2018 program. In the interim, as

indicated by him, the KKM additionally identified 1,095 smokers among grade school

understudies, comparable to 0.04 percent of 2.5 million elementary school understudies.

Which is separated the KOTAK 2018 program.

Through this Smoke-Free Dental Health program, the number (secondary school

understudies) going through treatment is 58, 050 or identical to 84.9 percent. While for

grade school understudies who smoke, a sum of 948 understudies comparable to 86.6

percent have gone through treatment. For authorization in schools, collaboration is made

with the school, while requirement outside the school is completed totally by officials

approved by the MOH. Through the Tobacco Product Control Regulations (PPKHT 2004),

Minors younger than 18 who smoke, bite, purchase or have any tobacco items are

disallowed. "In 2017, the MOH gave an aggregate of 258 takes note. Offenses under this

guideline with a compound of RM15,200.00. MOH likewise completed screening and

treatment exercises did by school dental groups all through Malaysia. These dental group

screening exercises are composed with requirement exercises and advocates at schools.

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 Therefore, it is time for the government to take a more drastic step in overcoming

the problem of addiction to cigarettes for the benefit of our people, especially the younger

generation. Measures by raising the price of cigarettes and raising taxes on tobacco-based

products to produce cigarettes need to be given serious attention by the government

because it can to some extent curb the problem of smoking addiction among our people,

especially among the younger generation. If the price of cigarettes is already raised,

individuals who are addicted to cigarettes will start thinking many times before they buy the

cigarettes involved in the future.

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References

Ahmad, A. (2022, January 15). Akta Baharu Bakal Hapus Rokok di Malaysia. Utusan Digital.
Retrieved January 26, 2022, from https://www.utusan.com.my/terkini/2022/01/akta-
baharu-bakal-hapus-rokok-di-malaysia/

Ketahui Akta Larangan Merokok Dan Manfaatnya. DoctorOnCall. (n.d.). Retrieved January
26, 2022, from https://www.doctoroncall.com.my/health-centre/berhenti-
merokok/dilarang-merokok

Siasat, W. S. (2019, January 15). Mengejutkan, 68, 321 Pelajar sekolah Menengah Merokok!
Sinarharian. Retrieved January 26, 2022, from
https://www.sinarharian.com.my/article/7682/SIASAT/pelajar-merokok

NSTP, W. (2018, October 16). Harga Rokok Naik Akhir Bulan Ini. Berita Harian. Retrieved
January 26, 2022, from
https://www.bharian.com.my/berita/nasional/2018/10/486738/harga-rokok-naik-
akhir-bulan-ini