EXCISE duties for smoking products have added RM15.3bil revenue into the government’s coffers between 2021 and July this year, says the Finance Ministry.
“The total tax revenue collected from devices, nicotine and non-nicotine liquids/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 Aug 25.
In comparison, the total tax revenue from cigarettes over the same period amounted to RM15.02bil.
Overall, the combined total excise or tax revenue from both product categories from 2021 to July 2025 is RM15.3bil,” it added.
Products classified as demerit goods, such as cigarettes, tobacco products and nicotine and non-nicotine liquids or gels used in electronic cigarettes and vape, are subject to excise duty.
This is in addition to sales tax and import duty if it is imported from abroad.
“Initially, excise duty was imposed on non-nicotine liquid or gel used in electronic cigarettes at a rate of RM0.40 per millilitre.
“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%. This excise duty came into effect on Jan 1, 2021,” it said.
Subsequently, the scope of excise duty was expanded to include nicotine liquids and gels used in electronic cigarettes and vapes, starting May 1, 2023.
The excise duty rate for both nicotine and non-nicotine liquids and gels is set at RM0.40 per millilitre,” it added.
The ministry was responding to a question by Datuk Wan Saiful Wan Jan (PN-Tasek Gelugor) on the total amount of tax revenue collected from vape compared to the collection from cigarette tax.
