Imposing duty more viable than a total ban, say experts

PETALING JAYA: While it is difficult to impose a total ban on nicotine-based products used in electronic cigarettes and vapes, regulating them with excise duties would be an acceptable move, say experts.

In tabling Budget 2023 on Friday, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the government planned to impose excise duties on the liquid or gel products with nicotine that were widely used with e-cigarettes and vaping devices.

He said vape, which contains nicotine and unregulated, is widely sold and raked in about RM2bil in sales.

“It would be nice if it is regulated and taxed,” he added.

Anwar said half of the revenue collected from the excise duty for nicotine products would be ploughed into the Health Ministry to improve the quality of health services.

Acknowledging that it is difficult to impose a total ban on such smoking products, public health advocate Datuk Dr Zainal Ariffin Omar said the revenue from the tax would help provide the Health Ministry with additional funds.

“Hopefully it will be used for anti-smoking and quit campaigns and other health education activities,” he said.

Malaysia University of Science and Technology economics professor Geoffrey Williams said no projections for potential revenue collection from this excise duty were shared during the tabling of Budget 2023.

“There was no estimate of the likely revenue from excise duties on vape and e-cigarettes in the Budget. The last estimate was that tax on vape and e-cigarettes might reach RM500mil, so the allocation would be RM250mil compared to around RM3bil from tobacco sales,” he said.

Consumers’ Association of Penang education officer NV Subbarow said he was disappointed that vape products were not banned outright.

“Around RM6.2bil, rising to RM8.8bil by 2030, is spent on smoking-related diseases according to the last Health Minister, so this must be viewed in context,” he added.