PUTRAJAYA: Datuk Seri Anwar Ibrahim has signalled his support to raising tobacco taxes following calls from certain quarters to end the decade-long moratorium on excise duty hikes.
The Prime Minister said that in principle, he agreed with such suggestions.
“I agree with the spirit of that proposal. I myself not only do not smoke, but also fully support anti-smoking campaigns,” he told reporters after attending the 2026 Budget Consultation Council at the Finance Ministry here on Thursday (Aug 7).
The last major increase in tobacco excise duty was in 2015, when the government raised it by 42.8%. Tobacco taxes have remained unchanged since then.
On July 31, the Prime Minister announced that pro-health taxes will be expanded to cover tobacco, vape and alcohol products.
Anwar stressed the need to handle health risks, stressing that it is not solely for tax revenue.
“It is to encourage behavioural changes and curb the worrying rise of non-communicable diseases,” he said when tabling the 13th Malaysia Plan (13MP) in the Dewan Rakyat/
The tax was previously only imposed on sugary beverages.
Anwar added that the healthcare sector will receive as much as RM40bil in allocation through the 13MP.
