KUALA LUMPUR, October 11 – The Malaysian government has announced an increase in excise duties for tobacco and alcohol products effective November 1, 2025, as part of its effort to encourage healthier lifestyles among Malaysians. Prime Minister Datuk Seri Anwar Ibrahim, in his Budget 2026 speech, said the move aligns with the nation’s agenda to reduce smoking and alcohol consumption.
Under the new rates, cigarette excise duty will rise by two sen per stick, while cigars, cheroots, and cigarillos will see an increase of RM40 per kilogram, and heated tobacco products by RM20 per kilogram. Alcoholic beverages will face a 10 percent tax hike.
Revenue collected from these increases will be channeled to the Ministry of Health to support lung care initiatives and treatments for diabetes and heart disease. The government will also continue import duty and sales tax exemptions on Nicotine Replacement Therapy products, including nicotine mist and lozenges, until December 31, 2027.
