TAXES on tobacco and smoking products should have been part of Budget 2025, health advocates say, as they welcomed the 40 sen hike to the sugar-sweetened beverage (SSB) tax.
As part of the government’s “war on sugar”, Prime Minister Datuk Seri Anwar Ibrahim announced that excise duties on sugar-sweetened beverages will be raised by 40 sen per litre starting Jan 1, 2025.
Anwar said the funds collected from the excise duties will be used for treatments and procurement of medicine supplies.
“It is concerning that no mention was made regarding tobacco duties.
“Nevertheless, it is crucial that the government continues its efforts to combat tobacco consumption,” said Federation of Malaysian Consumers Association (Fomca) chief executive officer Saravanan Thambirajah.
However, he said the higher excise duties for SSB is a positive step towards tackling the alarming rise of non-communicable diseases such as diabetes and obesity.
“From a consumer perspective, this policy aligns with public health goals, but it must be accompanied by complementary efforts to educate and encourage healthier consumption habits,” he said.
“However, the increased revenue from this sugar tax must be transparently reinvested into initiatives that directly benefit public health.”
Saravanan said the funds collected from the duties should be used on awareness and education campaigns and school nutrition programmes.
He also proposed that healthier food be subsided to ensure those with low sugar content or sugar-free options remain affordable.
Fomca tobacco and smoking control coordinator Muhammad Sha’ani Abdullah said the absence of a tobacco tax is very disappointing as the last increase was in 2015.
“While the government is struggling to raise funds, tobacco tax is an easy and right way to raise government revenue and pricier tobacco products would discourage smoking,” he said.
Prof Dr Sharifa Ezat Wan Puteh, a health economics and public health specialist with Universiti Kebangsaan Malaysia’s Faculty of Medicine, said the SSB tax hike may not be sufficient, adding that more input is needed in future increments.
Association of Private Hospitals Malaysia president Datuk Dr Kuljit Singh said the increase of excise duty on sugar will reduce consumption to some extent but continued education on the harm of excessive sugar intake is important.
