On February 23rd, the Malaysia Retail Electronic Cigarette Association (MRECA) called on the government to implement reasonable measures for electronic cigarette taxation. The Deputy Minister of Finance of Malaysia, Steven Sim, had previously stated that the government may include proposals for regulating the electronic cigarette industry in the 2023 budget plan, which could lead to an annual increase of nearly 1 billion Malaysian ringgit (approximately 156 million yuan) in government revenue.
Datuk Adzwan Ab Manas, President of MRECA, has expressed support for the government's introduction of regulatory measures such as a tax framework, but emphasized that the tax rate must be reasonable and not excessively high.
In the 2022 budget proposal submitted by the Ministry of Finance in October 2021, it was announced that the tax rate on tobacco would be increased by 200%. However, this proposal has not yet been implemented.
The Ministry of Finance has announced that a tax of 1.2 Malaysian Ringgit (approximately RMB 1.8) will be levied per milliliter of tobacco oil. This means an additional charge of 36 Malaysian Ringgit (approximately RMB 56.3) for a 30-milliliter bottle of tobacco oil. MRECA believes that the proposal is too high.
Adzwan stated that this would result in expensive electronic cigarette prices.
At the same time, he believes this will also discourage smokers from switching to electronic cigarettes due to their ultimately higher cost compared to traditional cigarettes. MRECA recommends that the government maintain the current tax rate of 0.40 ringgit per milliliter for e-liquid.
Finally, MRECA urges the immediate implementation of regulations in the industry to ensure products meet quality and safety standards.
References:
The Malaysian E-Vaporizers and Tobacco Alternative Association (MRECA) has stated that any proposed tax rate on vaping products should be reasonable. (Note: the original headline was already in standard journalistic English, only the article needed to be rewritten)
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
