Raise tobacco taxes now, fund a healthier Malaysia

TOBACCO taxes in Malaysia have remained stagnant since the last tax hike 10 years ago, making tobacco products, particularly cigarettes, more affordable as inflation and GDP per capita have increased since then. The Social and Economic Research Initiative (Seri) urges the government to press forward with tobacco tax increases in Budget 2026.

Critics of the government’s plans to raise tobacco taxes, particularly cigarette excise duties, often repeat the claim that higher taxes will only fuel the illicit market. This argument, however, is misleading and ignores both local evidence and international experience.