KUALA LUMPUR: The government will raise excise duties on cigarettes and alcohol products effective Nov 1, 2025, Prime Minister Datuk Seri Anwar Ibrahim said when tabling Budget 2026.
Anwar, who is also the Finance Minister, said the excise duty on cigarettes increased by 2 sen per stick, while duties on cigars, cheroots, and cigarillos rose by RM40 per kilogram, and on heated tobacco products by RM20 per kilogram of tobacco content.
The government has also extended the import duty and sales tax exemption on nicotine replacement therapy products, expanding it to include nicotine mist and nicotine lozenges, until Dec 31, 2027.
“To reduce access to alcoholic beverages and promote a healthier lifestyle, the government has agreed to raise the excise duty rate on hard liquor products by 10% effective Nov 1, 2025,” Anwar said.
He added that the additional revenue from cigarettes and alcoholic beverages will be channelled to the Health Ministry to support the lung health initiative, as well as diabetes and heart disease treatment programmes.
