KUALA LUMPUR, February 24 – The government plans to impose an excise duty on liquid or gel products containing nicotine used for electronic cigarettes and vaping. The Prime Minister, Datuk Seri Anwar Ibrahim, explained that the implementation of the duty is a measure to discourage the use of electronic cigarettes. Although nicotine vaping is still illegal in law, the fact is, it has been widely sold and is estimated to be worth over two billion ringgit.
It would be great if it were regulated and taxed so that does not encourage the use of vaping, said the Minister of Finance when presenting the 2023 Budget in the Dewan Rakyat on Friday. Anwar added that the government also supported the Ending Generation Policy (GEG) and agreed that half of the excise duty revenue would be re-allocated to the Ministry of Health. He said, it is an effort to improve the quality of health services In the meantime, in order to reduce leakage, he said, the enforcement efforts of government agencies will continue to be intensified together with the industry.
Strictly speaking, it is to curb revenue leakage and subsidize the crime of smuggling syndicates such as diesel, alcohol and cigarettes. He also informed that the Inland Revenue Board (LHDN) and the Royal Malaysian Customs Department (JKDM) will re-implement the voluntary recognition program. “Through this program, a 100 percent penalty waiver will be granted for voluntary confessions from June 1, 2023 to December 31, 2024,” he said.
