Malaysia Imposes Excise Tax of $0.004/ML; Manufacturers Need to Register Before April 30

Article from VaporVoice, edited by Mandy - The Malaysian government has removed nicotine-containing liquids in e-cigarettes from the list of controlled drugs, legalized nicotine-containing e-cigarettes, and could tax e-liquids.

On March 31, Health Minister Zaliha Mustafa issued an order in the Gazette, overturning the previous decision of the Poisons Commission to remove nicotine-containing e-cigarette liquid from the Poisons Act.

The Tobacco Products Control Regulations 2004 under the Food Act 1983 only cover traditional tobacco products. Removing nicotine e-juice from the Poisons Act essentially legalized vaping.

Excise Duty of RM0.40 per milliliter on E-cigarette Liquid

The Excise Duty (Amendment) Order 2023, announced by the Minister of Finance and Prime Minister Anwar Ibrahim on March 29, stipulates that nicotine-containing e-liquids or gels will be charged 40 sen ($0.004) per milliliter excise duty.

The tax on e-liquids containing nicotine came into effect on April 1.

The Poisons Board, an independent body set up under the Poisons Act, ultimately opposed the government's proposal to exclude nicotine-containing e-cigarette liquid from the list of poisons.

Ministry of Finance: E-cigarette Industry Participants Need to Register Before April 30.

E-cigarette industry players, especially local manufacturers producing liquid or gel nicotine-containing products, have been given until April 30 to register their manufacturing activities with the customs department. This prevents manufacturers from being sued for late registration.

Reference:
Malaysia Removes Nicotine E-Liquids From Poisons List

MoF: Vape industry given until April 30 to register vape manufacturing activities