PETALING JAYA: Makers of vape nicotine products must register their manufacturing activities for tax purposes, says the Finance Ministry.
They have been given until April 30 to do so or else be compounded for late registration by the Customs Department.
“Early registration will ensure comprehensive industry compliance and smooth tax collection by May 2023,” the ministry said in a statement.
It added that licensing registration under the Excise Act 1976 could also be done online through the MyExcise System at the link https://myexcise.customs.gov.my/myexcise/.
The ministry noted that by removing liquids or gels containing nicotine from the List of Poisons under the Poisons Act 1952, the Ministry of Health would present a new Bill to regulate all smoking products, including nicotine-containing materials.
According to the Federal Government Gazette Excise Duties (Amendment) Order 2023, the government will impose an excise tax of 40 sen per millilitre on e-cigarettes liquid or gel containing nicotine from April 1.
Finance Minister Datuk Seri Anwar Ibrahim, in Budget 2023 last month, announced the government planned to impose an excise tax on liquid or gel nicotine-containing products.
“As mentioned in the Budget 2023 announcement, half of the excise duty revenue collected from the nicotine products will be channelled to the Health Ministry to improve the quality of health services,” said the statement.
The government estimated that nicotine-containing vape liquids with a market value of RM2bil are currently being sold without tax.
The previous government had announced plans under Budget 2022 to introduce excise taxes at RM1.20 per millilitre for vape liquids, but its implementation was postponed.
A study by tobacco firm JTI Malaysia revealed that based on projections, the government missed the opportunity to collect RM866mil in taxes in 2022 from liquids or gels used for e-cigarettes.
