KUALA LUMPUR: While cigarette prices will go up, it will not be so drastic as to make smokers turn to illicit cigarettes to satisfy their addiction, says Health Minister Datuk Seri Dr Dzulkefly Ahmad.

"In our assessment, we are not only looking at increasing duties but also the effect of taxation on illicit cigarettes.

"The lower income group will turn to illicit cigarattes if prices go up to a level where it becomes unaffordable to them," he said when replying a supplementary question raised by Wong Chen (PH-Subang) in Parliament on Wednesday (Oct 31).

Dr Dzulkefly said the cost-benefit analysis on raising cigarette prices must strike a balance between cigarette duties and its impact on the rise of the reliance on illicit cigarettes.

In his question, Wong wanted to know if the government would increase duties on cigarattes up to 75% per stick in line with World Health Organisation's (WHO) taxation recommendation from the current 53% imposed by the government.

Dr Dzulkefly said, based on several studies, the government was losing revenue of between 27% and 45% a year due to illicit cigarettes.

"According to the previous Finance Ministry, in reality, we are losing up to 60% in revenue due to illicit cigarettes," he said.

On the impact of cigarettes on the economy, Dr Dzulkefly said WHO estimated that smoking resulted in the death of some 20,000 adult males in Malaysia every year.

He also cited a healthcare cost study done in 2007 which stated that the cost of treating lung cancer, heart and pulmonary diseases amounted to RM2.92bil a year.

"67.5% of that cost was borne by the government, while 32.5% by the patients.

"This represents 0.7% of the gross domestic product and a huge financial burden on the government," he added.

The Health Minister said it was inevitable that the prices of cigarettes would continue to rise in the future as a means to curb the smoking habit.

"If the use of tobacco is not adequately controlled, it is estimated that the government would be burdened with a health cost amounting to RM7.04bil by 2025," he added.

To a question by Datuk Seri Ismail Mohamed Said (BN-Kuala Krau), Dr Dzulkefly said curbing smoking among Muslims was not dependent of an edict issued by the National Fatwa Council or enforcement by the religious department.

"Smoking is an addiction. No matter (if there is) a fatwa or whatever, those who are addicted will continue to smoke," he said.

Earlier this month, Dr Zulkefly announced that cigarette prices would be going up by next month to curb smoking and in line with the recent implementation of the Sales and Service Tax (SST).