This sin tax kills two birds with one stone

REFERRING to the presentation of Budget 2021, the implementation of excise duty at the ad valorem rate of 10% on all types of electronic and non-electronic cigarette devices, including those used for vaping, and excise duty at the rate of 40 sen per millilitre for vaping liquid will increase government revenue through tax collection – especially through the sale of vaping devices and liquids that are currently untaxed.

Apart from raising revenue, the implementation of this tax could also potentially “bend the graph” of the increasing number of smokers in the country, as traders are bound to raise the prices of the products to cover the costs of the tax. Adding to that is the fact that the current situation of the Covid-19 pandemic has caused many Malaysians to be financially affected due to pay cuts or the loss of jobs.