Malaysian PM reports more than $40 million in e-cigarette taxes collected in 3 years, revenue to fund government projects

Oct.23.2024
Malaysian PM reports more than $40 million in e-cigarette taxes collected in 3 years, revenue to fund government projects
The Malaysian Prime Minister revealed in a parliamentary reply that Malaysia will collect $42.08 million in taxes from e-cigarettes and vaping products, including those with and without nicotine, between 2021 and 2024. The funds will support the government's administrative and development costs.

Malaysia's Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said in a written reply to Parliament that Malaysia will collect a total of RM183.1 million (US$42.08 million) in taxes from e-cigarettes and vaping products from 2021 to 2024, according to The Star on 23 October.

 

This amount includes taxes from both nicotine-containing and nicotine-free e-cigarette products, with taxes from nicotine-containing products amounting to RM100.3 million (US$23.05 million).

 

The regulations require that all e-liquids or gels used in e-cigarettes and vapor products, regardless of nicotine content, are subject to excise tax of 40 cents per millilitre.
 

The minister emphasised that all types of electronic and non-electronic devices, including e-cigarettes, will also be subject to the excise tax at a flat rate of 10%. The tax on nicotine-free products will be implemented from 1 January 2021, while those containing nicotine will be implemented from 1 May 2023.

 

He pointed out that these taxes will be allocated to the Consolidated Fund of the Government, as required by Article 97(1) of the Constitution. Funds for administrative and development expenditure, including funding for health plans and projects, will be allocated through the annual national budget process.

 

Earlier reports indicated that a health organization urged the government to allocate 50% of the revenue from e-cigarette taxes to support public health projects. They believe that e-cigarette tax revenue should be used to address the negative consequences of disposable nicotine e-cigarette device marketing and sales.

 

It is reported that in the budget speech of the Finance Minister on February 24, 2023, it was also mentioned that the tax revenue from e-cigarette products will be used in the health-related field. With the introduction of taxes on nicotine e-liquid for e-cigarettes in the 2023 budget, it also means that nicotine e-liquid and gels are excluded from the 1952 Poison Act.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA said tobacco grower organizations from five Americas countries called for stronger regional cooperation and balanced regulation, warning that restrictive policies could pressure farmers and legal supply chains. The article also provides data on major tobacco-producing countries in the Americas.
Special Report
Jun.02
U.S. Military Nicotine Policy Sparks Debate as Nicotine Pouches Enter Discussion
U.S. Military Nicotine Policy Sparks Debate as Nicotine Pouches Enter Discussion
An opinion article published by Stars and Stripes argued that the Pentagon’s January nicotine clinical guidelines overemphasize abstinence, fail to reflect the reality that about 30% of active-duty personnel use nicotine, and do not address nicotine pouches as potential harm-reduction products.
Industry Insight
Jun.08
Product|PMI Expands High-Strength Nicotine Pouch Portfolio With Zyn 16.5mg
Product|PMI Expands High-Strength Nicotine Pouch Portfolio With Zyn 16.5mg
According to Better Retailing, Philip Morris International (PMI) has launched Zyn Menthol Ice 16.5mg in the UK, marking the highest-strength nicotine pouch in the Zyn range to date. The eucalyptus- and menthol-flavored product is now available through PMI Open and will begin rolling out to wholesale channels from the end of May.
PMI
May.28
BAT Restructuring to Affect 9,000 Roles as Tobacco Group Pushes Cost Cuts and AI
BAT Restructuring to Affect 9,000 Roles as Tobacco Group Pushes Cost Cuts and AI
British American Tobacco (BAT) plans to cut about 5,500 jobs globally and shift around 3,500 roles to strategic partners by the end of 2026, affecting about 9,000 roles in total, as the company seeks to simplify operations, strengthen technology capabilities and deliver £600 million in annual savings by 2028.
BAT
Jun.29
Nicotine Pouches Lead U.S. Tobacco Growth as Vape Sales Decline
Nicotine Pouches Lead U.S. Tobacco Growth as Vape Sales Decline
New convenience store industry data show nicotine pouches have become the primary growth driver in the tobacco category, with oral nicotine sales rising nearly 30% over the past year while vape sales declined.
Business
Jun.05
South Korea Brings Synthetic-Nicotine E-Cigarettes Under Tobacco Rules From June 24, Targeting Online Sales and Evasion
South Korea Brings Synthetic-Nicotine E-Cigarettes Under Tobacco Rules From June 24, Targeting Online Sales and Evasion
South Korea began full enforcement of tobacco-style rules for synthetic-nicotine e-cigarettes on June 24, 2026, with fines of up to 100,000 won for use in non-smoking areas and enforcement focus on online sales, raw nicotine liquids and products falsely marketed as nicotine-free.
MarketNews
Jun.25 by 2Firsts Perspectives