Tax Revenue from E-Cigarettes Reaches $29.98 Million in Malaysia

Market by 2FIRSTS.ai
Jul.10.2024
Tax Revenue from E-Cigarettes Reaches $29.98 Million in Malaysia
Malaysian PM Datuk Seri Anwar Ibrahim announced $29.98 million in e-cigarette taxes collected, with new regulations effective by 2024.

According to a report by The Star on July 10th, Malaysian Prime Minister Datuk Seri Anwar Ibrahim stated that the Ministry of Finance has collected RM1.411 billion (USD 299.8 million) in tax revenue from e-cigarette taxes.

 

In a written response to Parliament on July 9, the Finance Minister stated: "In addition to nicotine gels and liquids for e-cigarettes, a levy of 40 sen per milliliter of e-cigarette liquid is also required.

 

A 40-minute consumption tax will take effect on May 1, 2023.

 

From 2021 to 2024, the total tax revenue from e-cigarette liquids amounted to 141.1 million Malaysian Ringgit. Of this amount, 82.51 million Ringgit (17.53 million USD) came from nicotine-free liquids, while 58.55 million Ringgit (12.44 million USD) came from e-cigarette liquids containing nicotine.

 

Electronic and non-electronic smoking devices, including e-cigarettes, are subject to a 10% ad valorem tax. This tax went into effect on January 1, 2021.

 

Anwar stated that the Public Health Smoking Control Act of 2024 (No. 852) was enacted on January 2, 2024.

 

The Ministry of Health is finalizing regulations on smoking products, including the regulation of e-cigarette products, in accordance with the law. It is expected that the law and regulations will take effect in August 2024. Once these regulations come into effect, the regulatory mechanism for e-cigarette products will become more comprehensive and effective.

 

He stated that taxes will be consolidated into the government's general fund in accordance with Article 97(1) of the Federal Constitution.

 

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