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

Imperial Brands Expands Blu Fruit-Flavour Offerings Following Consumer Preference Data
Imperial Brands Expands Blu Fruit-Flavour Offerings Following Consumer Preference Data
Imperial Brands has announced the launch of a new Sour Berry flavour for its Blu vape range. The product will launch across retail this month, with both the Blu bar kit and Blu pod pack carrying a recommended retail price of GBP 5.99 (approximately USD 7.79, based on 1 GBP ≈ 1.30 USD).
Apr.03 by 2FIRSTS.ai
Panama Seeks Unified Regulation on E-Cigarettes and Heated Tobacco Products, Including Use Restrictions in Public and Private Spaces
Panama Seeks Unified Regulation on E-Cigarettes and Heated Tobacco Products, Including Use Restrictions in Public and Private Spaces
Panamanian authorities are seeking to establish a single regulatory framework aimed at prohibiting the use of e-cigarettes, vaporizers and heated tobacco products in public and private spaces, as well as restricting their advertising and promotion.
Mar.11 by 2FIRSTS.ai
Costa Rica’s Constitutional Court Rejects Challenge, New Vape Rules to Take Effect on August 6
Costa Rica’s Constitutional Court Rejects Challenge, New Vape Rules to Take Effect on August 6
Costa Rica’s Constitutional Court has rejected an injunction seeking to stop a new vape regulation from taking effect, ruling that there was no specific harm to constitutional rights. As a result, Technical Regulation RTCR 519-2025, promoted by the Health Ministry, will enter into force on August 6 as originally planned.
Mar.20 by 2FIRSTS.ai
Philip Morris Ukraine Says Ukraine’s Flavored Vape Ban Still Lacks Effective Enforcement
Philip Morris Ukraine Says Ukraine’s Flavored Vape Ban Still Lacks Effective Enforcement
Mikhail Polyakov, deputy general director for corporate affairs at Philip Morris Ukraine, said Ukraine’s ban on flavored and aromatic additives for e-cigarettes, in force since July 11, 2024, has not worked in practice because compliance is not being enforced.
Mar.17 by 2FIRSTS.ai
PMI’s Portuguese unit to launch nicotine pouches in 2026 after tax clarification
PMI’s Portuguese unit to launch nicotine pouches in 2026 after tax clarification
After Portugal included nicotine pouches in the excise-tax (IEC) framework for tobacco and nicotine products, PMI’s Portuguese subsidiary Tabaqueira confirmed it will begin selling nicotine pouches in the country this year. The company is preparing a soft launch in two stores ahead of wider distribution, as the tax and regulatory position becomes clearer.
Mar.10 by 2FIRSTS.ai
South Africa health department agrees to exempt smokeless and non-combustible products from tobacco control bill
South Africa health department agrees to exempt smokeless and non-combustible products from tobacco control bill
At a parliamentary committee meeting in South Africa, Health Minister Aaron Motsoaledi said the health department has agreed to exempt non-combustible and smokeless products — including chewing tobacco, snus, nicotine pouches and e-cigarettes — from the Tobacco Products and Electronic Delivery Systems Control Bill. The department is prepared, at this stage, to exempt them from packaging and labelling requirements except for misleading or false claims.
Mar.06 by 2FIRSTS.ai