KUALA LUMPUR: Excise duties on smoking products added RM15.3bil to government revenue between 2021 and July of this year, says the Finance Ministry.
"The total tax revenue collected from devices, nicotine, and non-nicotine liquids or gels used in electronic cigarettes and vapes from 2021 to July 2025 amounted to RM288.45mil," the ministry said in a parliamentary written reply dated August 25.
In comparison, the total tax revenue from cigarettes over the same period amounted to RM15.02bil.
Overall, the combined excise or tax revenue from both product categories from 2021 to July 2025 is RM15.30bil.
Products classified as demerit goods, such as cigarettes, tobacco products, and nicotine and non-nicotine liquids or gels used in electronic cigarettes and vapes, are subject to excise duty, in addition to sales tax and import duty if imported.
"Initially, excise duty was imposed on non-nicotine liquid or gel used in electronic cigarettes at a rate of RM0.40 per millilitre.
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In addition, all types of electronic and non-electronic cigarette devices, including vapes, were subjected to ad valorem excise duty at a rate of 10%, effective January 1, 2021," it said.
Subsequently, the scope of excise duty was expanded to include nicotine liquids and gels used in electronic cigarettes and vapes from May 1, 2023.
The excise duty rate for both nicotine and non-nicotine liquids and gels is set at RM0.40 per millilitre.
The ministry was responding to Datuk Wan Saiful Wan Jan (PN–Tasek Gelugor) who asked about the total tax revenue collected from vape compared to cigarette tax.
