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Malaysian e-cigarette industry participants want the government to reduce tax rates

2021/11/02|Industry news

According to foreign power bullying, participants in Malaysia's national e-cigarette industry said that levying a consumption tax on e-cigarette products containing nicotine is a welcome measure, because it shows that the industry has taken a standardized step, but they hope to reduce the tax rate.

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"The tax also puts the country on the right track in achieving the goal of regulating the whole e-cigarette industry," said rizani Zakaria, chairman of the e-cigarette industry advocacy in Malaysia.

However, with the development of economy and industry, the implemented tax rate should be formulated in proportion to the benefit rate of products to hard core smokers.

"We hope the government can reconsider the tax rate it has set because it is quite high. This is because e-cigarettes have been proved to help smokers quit smoking and are less harmful than tobacco cigarettes," he added.

"The tax rate will make Malaysian tobacco and cigarette products more expensive. Ideally, the tax rate should be low so that the price of e-cigarettes will not exceed the price of cigarettes and become an incentive for smokers to quit smoking through e-cigarettes," rizani said.

At present, from 1 January 2022, the tax rate set through the 2022 budget is rm1.20 per milliliter (ML) of vape liquid, while the current tax rate is rm0.40 per milliliter.

At the same time, saiazuddin said Ahmed, chairman of the Malaysian e-cigarette chamber of Commerce, believes that this tax rate needs to be improved with the industry before implementation.

He added that the tax rate may have an impact on local manufacturers in the industry, mainly electronic cigarette and oil products, with a tax of rm72 per 60ml bottle.

In addition, the government should also consider formulating rules and supervising the whole industrial ecosystem.

Syed azaudin said: the regulatory rules should take into account that this product method is less harmful and improperly controlled than cigarettes, allow smokers to quit smoking through e-cigarettes, and ensure that the products meet safety and quality standards.

He said that industry participants are willing to consult or discuss the drafting of regulatory rules and tax implementation, and fully cooperate with them.

"We are ready to participate in and make suggestions on the formulation of any rules and tax implementation related to the domestic e-cigarette industry. We hope Malaysia will continue to become one of the world's leading e-cigarette manufacturers," Syed azaudin added.

He added that the announcement also brought hope to industry participants to see the industry flourish at home and around the world.


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