Key Points
- Groups seek 5% annual hike;
- 80% back higher tobacco tax;
- Support rises to 91% with earmarking;
- Excise freeze made cigarettes cheaper.
2Firsts, May 26, 2026 — According to Malaysian media reports from The Star and The Edge Malaysia, tobacco control groups in Malaysia have called on the government to raise tobacco taxes by at least 5% annually to reduce tobacco consumption and increase funding for public services.
The proposal is based on a nationwide survey released by the Social & Economic Research Initiative (SERI).
The Edge Malaysia reported that the survey polled 3,200 respondents. It found that 80% of Malaysians support another tobacco tax increase this year, with support rising to 91% if the revenue is earmarked for health and social programmes.
The survey also found that after the government ended a decade-long freeze on tobacco excise duties and raised tobacco taxes in November 2025, 86% of Malaysians supported the increase, while 55% said the increase should have been higher.
According to the report, the November 2025 tax increase raised cigarette excise duty by two sen per stick. Taxes on cigars, cheroots and cigarillos increased by RM40 per kilogramme, while heated tobacco products were subject to an additional RM20 per kilogramme of tobacco content.
SERI said Malaysia imposes tobacco taxes primarily to curb smoking, and revenue from the higher tobacco tax — together with a 10% excise duty increase on alcoholic drinks — has been earmarked for national healthcare spending.
SERI senior researcher Muhammad Daniel Kittu said at a media briefing on May 25 that the prolonged freeze on tobacco excise duties had made cigarette prices about 12% cheaper in real terms over the past decade.
He said prices of staple food items, including nasi lemak, white rice, roti canai and satay, rose by as much as 48% in real terms over the same period.
The Star reported that Muhammad Daniel said higher cigarette prices would prompt smokers to reduce consumption and free up money for essentials such as food, healthcare and education.
He also said higher tobacco taxes could reduce smoking rates, prevent disease and fund public services.
According to The Star, even among smokers, 51% of respondents supported the proposed tobacco tax increase.
Groups endorsing the proposed 5% annual increase include the Malaysian Anti-Drug Association, the Malaysian Council for Tobacco Control and the Muslim Youth Movement of Malaysia.
Asked whether higher taxes could drive illicit cigarette sales, Muhammad Daniel said evidence showed otherwise.
He said:
“The real driver of illicit trade is weak enforcement, not tobacco prices.”
The Edge Malaysia also noted that public acceptance of higher tobacco taxes was significantly stronger than support for other tax measures. More than half of respondents supported higher tobacco taxes, compared with only 16% supporting an expansion of the Sales and Service Tax (SST).
Industry observers said the discussion reflects Malaysia’s effort to link tobacco control, public health funding and fiscal reform more closely.
（Cover Image：The Malaysian Reserve）
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