Abstract
The circulation and sale of cigarettes without excise stamps remain a serious issue in Indonesia, generating significant economic, social, and moral consequences. This practice not only results in substantial losses of state revenue from excise taxes, but also creates unfair business competition and raises ethical dilemmas, particularly when conducted by Muslim traders. This study aims to analyze the patterns of cigarette sales without excise stamps, identify the factors driving such practices, and examine their implications for Islamic business ethics. The research employs a qualitative approach using a phenomenological method. Data were collected through in-depth interviews, field observations, and documentation involving urban Muslim traders in Pontianak City. The findings indicate that the sale of cigarettes without excise stamps is influenced by economic pressures, market behavior, social dynamics, weak regulatory enforcement, and traders’ rational considerations aimed at sustaining their livelihoods. From the perspective of Islamic business ethics, this practice contradicts fundamental principles such as justice, honesty, social responsibility, and compliance with the law as part of public welfare (maslahah). Although some traders demonstrate religious awareness, short-term economic considerations tend to dominate their decision-making processes. This study concludes that strengthening Islamic business ethics is essential as a moral foundation for commercial activities and as a complementary approach to public policy efforts in reducing the circulation of cigarettes without excise stamps in Pontianak City.