Vape liquids to be taxed from April 1

PETALING JAYA: The government has gazetted an excise duty for vape liquids containing nicotine at 40 sen per milliliter.

This new duty will be imposed beginning tomorrow (April 1) following the commencement of the Excise Duties (Amendment) Order 2023.

The new duty was sighted in a federal government gazette notice released today (March 31) on the Federal Legislation Portal.

The Excise Duties (Amendment) Order 2023 was delivered by Prime Minister Datuk Seri Anwar Ibrahim under subsection 6(1) of the Excise Act 1976.

The gazette would be presented before the Dewan Rakyat pursuant to subsection 6(2) of the Excise Act 1976.

During the tabling of the Budget 2023 in February, Anwar said the government planned to impose an excise duty on vape products.

The Finance Minister said it is estimated over RM2bil in vape products had been sold despite not being recognised in the eyes of the law and it would be prudent for it to be regulated and taxed to discourage vaping.

He also said the government supported the generational endgame Bill (GEG) and agreed that half of the proceeds from this excise duty would be allocated to the Health Ministry as an effort to improve the quality of health services.

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