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

FDA Says Flavored ENDS Must Show “Added Benefit” as Small Manufacturers Seek Clearer Switching Benchmarks
FDA Says Flavored ENDS Must Show “Added Benefit” as Small Manufacturers Seek Clearer Switching Benchmarks
During the FDA PMTA roundtable session on “Studies of Adult Benefit,” officials said flavored ENDS must demonstrate “added benefit” over tobacco-flavored products under the APPH standard, including sustained complete switching evidence. Small manufacturers questioned switching benchmarks, study duration, and bridging expectations.
Feb.11
French Council of State Strikes Down Total Vape Ban in French Polynesia
French Council of State Strikes Down Total Vape Ban in French Polynesia
France’s highest administrative court, the Council of State, has ruled that Article 76 of French Polynesia’s tobacco law establishing a total ban on vaping products is illegal. The provision, adopted in August and due to take effect by 2027, was successfully challenged by local importers and distributors.
Dec.25 by 2FIRSTS.ai
2Firsts Interview | Bengt Wiberg: Why the Oral Health Risks of Nicotine Pouches Merit Further Study
2Firsts Interview | Bengt Wiberg: Why the Oral Health Risks of Nicotine Pouches Merit Further Study
As nicotine pouches gain global traction as a lower-risk alternative to smoking, questions are emerging about their potential oral health effects. In a 2Firsts interview, Stingfree AB founder Bengt Wiberg discusses why gum irritation and oral lesions warrant closer scrutiny within the broader framework of tobacco harm reduction.
Jan.06
San Francisco reaches $1 million settlement with nicotine pouch retailer Lucy Goods
San Francisco reaches $1 million settlement with nicotine pouch retailer Lucy Goods
In the United States, California, San Francisco City Attorney David Chiu announced a $1 million settlement requiring online tobacco retailer Lucy Goods, Inc. to stop shipping illegal tobacco products into San Francisco.
Jan.09 by 2FIRSTS.ai
Poland to ban “characterising flavours” in heated tobacco sticks from Jan. 18, 2026
Poland to ban “characterising flavours” in heated tobacco sticks from Jan. 18, 2026
Poland will implement an amended health protection law on January 18, 2026, restricting the availability of tobacco inserts used in heated tobacco devices. The new rules prohibit products with a “characterising flavour,” meaning a clearly noticeable taste or smell other than tobacco, derived from additives and detectable before or during use.
Jan.20 by 2FIRSTS.ai
Belarus plans to tighten licensing for e-cigarette and e-liquid trade; Lukashenko expresses support
Belarus plans to tighten licensing for e-cigarette and e-liquid trade; Lukashenko expresses support
A report says Belarus plans to tighten, at the legislative level, the licensing of trade in electronic cigarettes and related mixtures (e-liquids). The draft law was discussed at a meeting chaired by President Alexander Lukashenko with the leadership of the Council of Ministers, according to a BelTA correspondent.
Feb.06 by 2FIRSTS.ai