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

Oct.23.2024

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.

References:

[1] RM183.1mil taxed from e-cigs, vape products channelled to healthcare efforts, says Anwar

Also Read:

[1] Malaysian Authorities Urged to Crack Down on E-Cigarette Sales

[2] Strengthening Enforcement of Smoke-Free Zones in Malaysia: Ministry of Health.

[3] Malaysia's Health Minister: No Need to Follow Foreign E-Cig Bans, Focus on Enforcing New Smoking Control Act

[4] Sabah State Health Department Launches Public Education on Smoking Products

[5] Call for Strict Enforcement of Tobacco Control Law in Malaysia

[6] Malaysian Health Minister clarifies tobacco product display ban costs

[7] Malaysia Health Minister: E-cigarette Disguise Stickers are Not Regulated.

[8] Malaysia enforces Public Health Tobacco and Smoking Control Act

[9] Interview with Euromonitor: Disposables to Phase Out in Europe by Next Year, Malaysia's E-Cig Bill "Not a Big Issue"

[10] CAP urges government to reject e-cigarette industry's memorandum proposal

[11] MVIA Responds to 2Firsts:The e-liquid capacity for closed pod products will be reduced to 2ml two years from now

[12] Malaysian e-cigarette industry requests suspension of new regulations

[13] The New Tobacco Control Act: Protecting Children from Harmful Products

[14] Malaysia to Enact Public Health Smoking Control Act 2024

#Legislation #E-liquids #Asia #Malaysia

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