KUALA LUMPUR: A total of RM183.1mil in tax revenue has been collected from electronic cigarettes and vape products in the past three years, says Prime Minister Datuk Seri Anwar Ibrahim.
The products included ecigarettes containing nicotine or non-nicotine, said Anwar, who is also Finance Minister, in a written parliamentary reply to Datuk Dr Ahmad Yunus Hairi (PN-Kuala Langat).
From the total sum, RM100.3mil was collected for smoking products containing nicotine, he said, adding that this figure was from 2021 to 2024.
Both nicotine and non-nicotine liquid or gel used in electronic cigarettes and vapes is subject to an excise duty at a rate of 40sen per millilitre.
“In addition, all types of electronic and non-electronic cigarette devices, including vapes, are subject to excise duty, but at an ad valorem rate of 10%,” he said.Taxation for non-nicotine liquid and gel commenced on Jan 1, 2021, while for nicotine counterparts, it commenced on May 1, 2023.
Anwar said the tax collection would be channelled to the government’s consolidated fund, as required by Article 97(1) of the Federal Constitution.
“Any withdrawals from this fund to finance administrative and developmental expenditures, including healthcare programmes and projects, will need to go through the annual national budget preparation process,” he said.
It was previously reported that Galen Centre for Health and Social Policy has urged the government to earmark half of the revenue taxes imposed on nicotine and non-nicotine liquids to support public health initiatives.
According to them, vape tax revenue should be used towards rectifying the consequences of unrestricted marketing and sales of disposable nicotine vape devices.
