KUALA LUMPUR (Oct 7): The government should consider raising excise duties on cigarettes and tobacco products to 77 sen per stick (currently 40 sen), representing 61% of the retail price, according to the Galen Centre for Health and Social Policy.
The independent public policy research company said in a statement on Monday that the proposed revision tax hike could generate an additional RM771.8 million in revenue, adding that these funds should also be allocated specifically for health-related expenditure.
“This is not unreasonable as the tax on these products have remained unchanged since 2015. It is overdue,” Galen Centre said. The proposal comes ahead of the tabling of the 2025 Budget on Oct 18.
The Galen Centre also commended the Ministry of Health for its recent implementation of new regulations on tobacco and vape products, which took effect on Oct 1.
The research house described the move as a "genuine game-changer" in Malaysia's battle against smoking, vaping, and nicotine addiction.
“What we are gratified to see is that these new regulations which replace the previous version, now also include vape and e-cigarettes equally under expanded and updated controls,” Galen Centre chief executive officer Azrul Mohd Khalid said.
Azrul noted that vaping had become largely unregulated following the government's decision last year to remove nicotine used in vape and e-cigarettes from the Poisons Act for taxation purposes.
“With these new regulations, this Pandora's Box can now be closed and the situation brought under control," Azrul said. Still, the success will depend on effective enforcement and cooperation, he noted.
The new rules include bans on point-of-sale displays, restrictions on nicotine content in e-cigarettes, a prohibition on vending machine sales, and measures to prevent the involvement of the vape and tobacco industries in sports and lifestyle events.
These regulations are aimed at curbing nicotine addiction and reducing underage smoking and vaping.