Tobacco groups call for yearly 5% tax hike


PETALING JAYA: Tobacco control groups are advocating for a yearly 5% tax increase to reduce tobacco consumption among Malaysians. 

This follows findings from a research survey by the Social and Economic Research Initiative (Seri), with 80% of 3,200 respondents backing such a tax increase.

Seri senior researcher Muham­mad Daniel Kittu said 72% of respondents believed higher tobacco taxes could also help ease cost-of-living pressures.

He said the tax will reduce the smoking rate and prevent diseases, adding that the revenue could be used to fund public services.

“Even the majority of smokers (51%) agreed to this,” he said when presenting the research findings yesterday ahead of World No Tobacco Day on Sunday.

The groups endorsing the 5% annual increase include the Malaysian Anti-Drug Association, Malaysian Council for Tobacco Control and the Muslim Youth Movement of Malaysia.

Muhammad Daniel said though food prices like nasi lemak, white rice and roti canai have risen by up to 48%, tobacco excise duties remained stagnant since 2015 with only a RM0.02 increase per stick in 2025. 

Muhammad Daniel said higher cigarette prices will prompt smokers to cut down, freeing up money for essentials such as food, healthcare and education.

Asked if higher taxes could drive illicit cigarette sales, Muham­mad Daniel said the evidence showed otherwise.

“The real driver of illicit trade is weak enforcement, not tobacco prices,” he said.

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