Kicking the habit with sin taxes


PETALING JAYA: There are two good things that will come out of the government move to increase taxes on cigarettes and alcohol products, says experts.

For one, it will be a big step towards reducing smoking and alcohol addiction.

More importantly, though, the decision to channel the money collected to the Health Ministry will be a big help.

Malaysian Council for Tobacco Control president Assoc Prof Dr M. Murallitharan said the expected price increase could effectively function as a deterrent, especially in making the products less accessible to the younger generation.

“We have not had a significant price increase in cigarettes over the past decade. It is also good that the money collected have been earmarked for the Health Ministry’s initiatives,” he said when contacted.

On concerns that this would drive a spike in demand for illicit cigarettes, Murallitharan stressed the importance of parallel control measures.

“The Prime Minister spoke about enforcement efforts and it should be applied here.”

Murallitharan, who is also National Cancer Society of Malaysia managing director, said the exemption of import duty and sales tax on nicotine replacement therapy (NRT) products until Dec 31, 2027, reflects the government’s seriousness in helping people quit the habit.

“If we want people to quit smoking, we need to ensure easy access and affordable smoking cessation products.

“We can see that the government supports this and this is another step forward,” he said.

Anti-smoking activist NV Subbarow said the increased tax on cigarettes was good news.

“It may seem like a small amount to some but it will be a pinch on smokers. Smokers must also realise they are consuming a product that harms them.”

He added that higher prices can be a deterrent against those looking to take up the smoking habit.

“The authorities must also take necessary action on smuggling of both cigarettes and alcohol.”

Starting Nov 1, the prices of cigarettes and alcoholic beverages will increase due to new tax measures.

Prime Minister Datuk Seri Anwar said this initiative was part of the government’s efforts to strengthen the overall strategy “Agenda Nasional Malaysia Sihat”.

The excise duty on tobacco products will be increased as follows by two sen per stick for cigarettes while cigars, cheroots and cigarillos will rise by RM40 per kg.

For heated tobacco products, the duty will go up by RM20 per kg of tobacco content. The excise duty on alcoholic beverages will go up by 10%, also effective Nov 1.

The exemption of import duty and sales tax on NRT products will now include nicotine mist and nicotine lozenges, making it easier for smokers to access cessation aids.

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