Excise duty to be imposed on all electronic, non-electronic cigarettes

  • Nation
  • Friday, 06 Nov 2020

PETALING JAYA: All types of electronic and non-electronic cigarette devices, including the fluid, will be subjected to excise duties, says Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said an excise duty at an ad valorem rate of 10% would be imposed on all types of electronic cigarettes devices and non-electronic ones, including vape.

"Electronic cigarettes liquid too will be subjected to an excise duty at a rate of 40 sen per millimeter," he said during the tabling of the Budget 2021 in parliament on Friday (Nov 6).

On cigarettes, beginning Jan 2021, Tengku Zafrul said taxes would be imposed on cigarettes and tobacco products on all duty-free islands and any free zones that have been permitted retail sales of duty free cigarettes

He added that the issuance of new cigarette import licenses would also be frozen.

In fact, there would be a tightening of the renewal of cigarette import licenses through the revision of license conditions including imposing import quotas.

He said that the transhipment of cigarettes activities to selected ports would also be limited.

"We will impose taxes on drawbacks on all imported cigarettes for the purpose of transhipment and re-exports," he said, adding that transhipment activities and re-exports of cigarettes using pump boats would also not be allowed.

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