Prioritise meaningful increase in tobacco taxation

THE Social and Economic Research Initiative (Seri) strongly supports the announcement by Prime Minister Datuk Seri Anwar Ibrahim on Thursday on the expansion of Malaysia’s pro-health tax regime to include tobacco, vape, and alcohol products (online at bit.ly/star_vapetax) under the 13th Malaysia Plan.

This move recognises the urgent need to address the rising burden of noncommunicable diseases, which are responsible for more than two-thirds of deaths in Malaysia and place a growing strain on our healthcare system and national productivity.

We welcome the linking of fiscal tools with public health outcomes. Tobacco taxation is the single most effective measure to reduce smoking prevalence. It protects our children from addiction, reduces healthcare costs, and generates much-needed revenue.

Cigarettes have become increasingly affordable, with no tax increase since 2016. This affordability contributes to continued high smoking rates, particularly among youth and low-income groups. A RM5 per pack increase could generate an additional RM1.2bil in annual revenue according to the cost recovery and revenue estimator of the Tobacco Atlas.

The RM1.2bil generated annually from a RM5/pack tax hike could cover major expenditures like toll subsidies or cash aid without burdening the broader population. It’s a win-win for fiscal sustainability and population health.

Seri urges the government to:

> Prioritise a meaningful increase in tobacco taxation, with a minimum of RM5 per pack.

> Earmark a portion of the revenue for public health programmes and social protection.

> Strengthen enforcement to address illicit trade, ensuring that industry lobbying does not derail health-driven reforms.

We now have the data, the public mandate, and a clear political window. This is an opportunity to protect millions of lives, uphold economic justice, and reinforce Malaysia’s leadership in evidence-based policymaking.

DR HELMY HAJA MYDIN

Chairman

MUHAMMAD DANIEL KITTU

Health economist

Social and Economic Research Initiative (Seri)

Seri is a non-partisan think-tank dedicated to promoting evidence-based policies that address issues of inequality.