KUALA LUMPUR: Decisions on duties and taxes imposed on vape products containing nicotine liquids or gels will be determined in line with the Court of Appeal's ruling on the matter, says Finance Minister Datuk Seri Anwar Ibrahim.
The Prime Minister also said Putrajaya takes note of the High Court's decision on the judicial review of the exemption order from the Poisons List under the Poisons Act 1952.
"Given that the Health Ministry, through the Attorney General's Chambers, has filed an appeal against the Kuala Lumpur High Court's judgment, any government decision arising from the matter will be made in accordance with the Court of Appeal's eventual decision," he said in a written parliamentary reply on Wednesday (June 24).
He was responding to Datuk Dr Ahmad Yunus Hairi (Perikatan Nasional–Kuala Langat) on tax implications involving nicotine vape products following the Kuala Lumpur High Court's ruling on the judicial review of the exemption order removing nicotine liquids or gels from the Poisons List.
On May 15, the High Court ruled that the government's decision to de-list liquid nicotine from the Poisons Act 1952 was "irrational".
Justice Aliza Sulaiman said this in her decision allowing a judicial review filed by three non-governmental organisations (NGOs) against the Health Ministry and the government for de-listing nicotine liquids and gels used in e-cigarettes from the poisons list.
The court found that the main factor in the Health Ministry's decision to de-list liquid nicotine was due to the tabling of the 2023 Budget, where the Finance Minister had proposed to impose excise duties on e-cigarettes and vape liquids containing nicotine.
By legalising liquid or gel nicotine in electronic cigarettes and vapes, the government, which is the second respondent, can tax such products and revenue collected channelled towards health initiatives by the Healthy Ministry, the court said.
