An Islamic Economic Analysis of Illegal Cigarette Trade and Its Implications for Market Justice and Public Welfare

FIRZA RENALDI, AHMAD IMAM (2026) An Islamic Economic Analysis of Illegal Cigarette Trade and Its Implications for Market Justice and Public Welfare. Kartika: Jurnal Studi Keislaman, 6 (2). pp. 3641-3657. ISSN 2810-0573

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Abstract

The circulation of illicit cigarettes has become a significant economic and social
issue in Indonesia due to its impact on market competition, government revenue,
and public welfare. This study aims to analyze the implications of illicit cigarette
trade for market fairness and community welfare from the perspective of Islamic
economics in Paiton District, Indonesia. A qualitative descriptive approach was
employed through in-depth interviews, observations, and documentation involving
representatives of the legal cigarette industry, retailers, and consumers. The
findings reveal that the illicit cigarette trade creates market distortions by enabling
producers to evade excise obligations and regulatory requirements, thereby
gaining an unfair competitive advantage. This practice weakens the
competitiveness of the legal tobacco industry, reduces government revenue, and
threatens the sustainability of the formal tobacco sector. Although consumers
benefit from lower prices, the long-term consequences include declining public
welfare and reduced employment opportunities. From the perspective of Islamic
economics, this practice contradicts the principles of 'adl (justice) and maslahah
(public welfare), as it prioritizes individual gain at the expense of collective
interests. Therefore, stronger law enforcement, public awareness, and ethical
economic practices are essential to promote fair market competition and
sustainable social welfare.

Item Type:	Article
Uncontrolled Keywords:	Keywords: Illicit Cigarettes; Market Justice; Maslahah; Islamic Economics; Public Welfare.
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HD Industries. Land use. Labor
Divisions:	Fakultas Agama Islam > S1 Ekonomi Syari'ah
Depositing User:	Unnamed user with email ahmadimamfirzarenaldi@gmail.com
Date Deposited:	18 Aug 2026 04:13
Last Modified:	18 Aug 2026 04:13
URI:	https://repository.unuja.ac.id/id/eprint/4244

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