Earlier, when Malaysian Finance Minister Tengku Zafrul Aziz submitted the 2022 budget in Parliament, the government plans to impose a consumption tax on vape and e-liquid or gel products containing nicotine. A bill on the regulation of tobacco, e-cigarettes, e-cigarettes and waterpipes will be submitted to the lower house of the bicameral parliament, the federal legislature of Malaysia next year.
Recently, the Malaysian vape Industry Advocacy Organization （MVIA） once again called on the government to review the taxes levied on e-cigarette products starting in January 2022. However, the person in charge of the organization claimed that the excise tax of RM1.20 per milliliter of nicotine e-liquid is too high and will burden manufacturers.
“In most countries, the tax rate of e-liquid is very low. For example, in European countries, the tax rate is only 0.10-0.20 euros per milliliter.” He said in a statement.
He added that other countries such as the United Kingdom and New Zealand do not even impose taxes on e-cigarette products, claiming that their governments recognize it as a tool to help smokers quit smoking. Setting taxes too high may prompt legitimate sellers to increase prices, which may lead consumers to look for cheaper alternatives in the illegal market.
Rizani also urged the government to review its mechanism for regulating e-cigarettes and not to compare them with tobacco products. He stated that this is to ensure that the e-cigarette industry remains competitive, and pointed out that 3,300 small and medium-sized enterprises are involved, providing employment opportunities for 15,000 employees.
“E-cigarettes are not cigarettes or tobacco products. It has been proven to help smokers quit smoking because it is a less harmful alternative. If the regulation does not distinguish between e-cigarette products and tobacco, it will hinder smoking cessation efforts and will only make Tobacco companies benefit.” The head of the organization said.
He once again took the United Kingdom and New Zealand as examples, saying that the governments of these two countries have implemented stricter regulations on tobacco products, but have left some room for e-cigarette products.
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