Kuala Lumpur, July 10, 2024 — Malaysia’s Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim, announced that the government has collected 141.1 million ringgit (approximately 29.98 million USD) in tax revenue from e-cigarette products between 2021 and 2024. The new e-cigarette regulatory framework is set to take effect in August 2024.
According to The Star’s July 10 report, the Prime Minister disclosed in a written response to Parliament on July 9 that the Ministry of Finance has accumulated significant tax revenue from e-cigarettes. “Besides the nicotine gels and liquids used in e-cigarettes, a consumption tax of 40 sen per milliliter of e-cigarette liquid was enforced starting May 1, 2023,” he noted.
From 2021 to 2024, the tax revenue from e-cigarette liquids amounted to 141.1 million ringgit. Of this, 82.51 million ringgit (17.53 million USD) was derived from non-nicotine liquids, while 58.55 million ringgit (12.44 million USD) came from nicotine-containing e-cigarette liquids. Electronic and non-electronic smoking devices, including e-cigarettes, are also subject to a 10% ad valorem tax, effective from January 1, 2021.
Anwar further stated that the “2024 Public Health Smoking Products Control Act” (Act 852) was enacted on January 2, 2024. The Ministry of Health is currently finalizing smoking product regulations under this Act, which includes e-cigarette product regulations. These regulations are expected to come into force by August 2024. Once implemented, the regulatory framework for e-cigarette products will become more comprehensive and effective.
The collected tax revenue will be deposited into the government’s consolidated fund as mandated by Article 97(1) of the Federal Constitution.
The introduction of these regulations is a significant move towards better oversight and control of the e-cigarette market in Malaysia. The taxation and regulatory measures are expected to enhance public health safety and ensure that the e-cigarette industry operates within a structured and monitored framework.
