Over RM141mil tax collected from vape

KUALA LUMPUR: The Finance Ministry has collected RM141.1mil in tax revenue from vape, says Prime Minister Datuk Seri Anwar Ibrahim.

“Apart from nicotine gel and liquid used in e-cigarettes, an excise duty of 40sen per millilitre is imposed on vape,” said the Finance Minister in a parliamentary written reply dated July 9.

The 40sen excise duties came into effect on May 1,2023.

“The total tax collection from vape liquid from 2021 to 2024 is RM141.1mil. Of this RM82.51mil were from liquid without nicotine, and RM58.55mil were from vape liquid with nicotine,” he said.

Electronic and non-electronic smoking devices, including vapes, are subject to excise duties, which are imposed at an “ad-valorem” rate of 10%. This came into effect on Jan 1, 2021.

Anwar said the Control of Smoking Products for Public Health 2024 (Act 852) was gazetted on Jan 2, 2024.

“The Health Ministry is finalising the smoking products rules under the Act, which entails regulation on vape products,” he said.

“Both the Act and the Rules are expected to be enforced in August 2024. Once this regulation comes into effect, the regulatory mechanism on vape products will become more comprehensive and effective,” he added.

He said the tax collection would be channelled to the government’s consolidated fund, as required by Article 97(1) of the Federal Constitution.

He was responding to Datuk Wan Saiful Wan Jan(PN-Tasek Gelugor) on the tax collection from vape liquid, the steps taken to increase revenue and how the money is used towards improving people's health.

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