Malaysian PM reports more than $40 million in e-cigarette taxes collected in 3 years, revenue to fund government projects

Oct.23.2024
Malaysian PM reports more than $40 million in e-cigarette taxes collected in 3 years, revenue to fund government projects
The Malaysian Prime Minister revealed in a parliamentary reply that Malaysia will collect $42.08 million in taxes from e-cigarettes and vaping products, including those with and without nicotine, between 2021 and 2024. The funds will support the government's administrative and development costs.

Malaysia's Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said in a written reply to Parliament that Malaysia will collect a total of RM183.1 million (US$42.08 million) in taxes from e-cigarettes and vaping products from 2021 to 2024, according to The Star on 23 October.

 

This amount includes taxes from both nicotine-containing and nicotine-free e-cigarette products, with taxes from nicotine-containing products amounting to RM100.3 million (US$23.05 million).

 

The regulations require that all e-liquids or gels used in e-cigarettes and vapor products, regardless of nicotine content, are subject to excise tax of 40 cents per millilitre.
 

The minister emphasised that all types of electronic and non-electronic devices, including e-cigarettes, will also be subject to the excise tax at a flat rate of 10%. The tax on nicotine-free products will be implemented from 1 January 2021, while those containing nicotine will be implemented from 1 May 2023.

 

He pointed out that these taxes will be allocated to the Consolidated Fund of the Government, as required by Article 97(1) of the Constitution. Funds for administrative and development expenditure, including funding for health plans and projects, will be allocated through the annual national budget process.

 

Earlier reports indicated that a health organization urged the government to allocate 50% of the revenue from e-cigarette taxes to support public health projects. They believe that e-cigarette tax revenue should be used to address the negative consequences of disposable nicotine e-cigarette device marketing and sales.

 

It is reported that in the budget speech of the Finance Minister on February 24, 2023, it was also mentioned that the tax revenue from e-cigarette products will be used in the health-related field. With the introduction of taxes on nicotine e-liquid for e-cigarettes in the 2023 budget, it also means that nicotine e-liquid and gels are excluded from the 1952 Poison Act.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Singapore's Health Minister Responds to Queries on Legal Cigarettes and Banned E-cigarettes, Drawing Public Discontent
Singapore's Health Minister Responds to Queries on Legal Cigarettes and Banned E-cigarettes, Drawing Public Discontent
Singapore's Health Minister Ong Ye Kung defended the e-cigarette ban, noting that e-cigarette cartridges have far more nicotine than cigarettes and can equal four packs. His comments sparked criticism on social media, with users questioning his neglect of the harms of cigarette combustion by-products and suggesting the government prioritizes tobacco tax revenue. Many called for regulation instead of a total ban.
Sep.02 by 2FIRSTS.ai
Dutch doctors accuse Snapchat of not implementing its ban commitment, with e-cigarette transactions still rampant
Dutch doctors accuse Snapchat of not implementing its ban commitment, with e-cigarette transactions still rampant
In June 2025, the instant messaging app Snapchat promised to take measures to prevent minors from being exposed to illegal e-cigarette transactions through the platform. However, an investigation by doctors from the Leiden University Medical Center in the Netherlands found that the number of e-cigarette sellers not only failed to decrease after the promise but actually increased from 607 to 615. Purchasing remains just as easy.
Aug.28 by 2FIRSTS.ai
Bavaria in Germany plans to regulate e-cigarettes, heated tobacco, and hookahs as strictly as cigarettes
Bavaria in Germany plans to regulate e-cigarettes, heated tobacco, and hookahs as strictly as cigarettes
The Christian Social Union (CSU) in Bavaria, Germany, plans to amend the Health Protection Act to subject e-cigarettes, hookahs, and heated tobacco devices to the same stringent regulations as conventional cigarettes. These products will be completely banned in restaurants, schools, and other public places. The Green Party has welcomed this initiative, emphasizing the importance of protecting children and adolescents from nicotine addiction.
Aug.22 by 2FIRSTS.ai
Malaysia's Perlis Customs seized more than 510,000 smuggled e-cigarettes, involving more than US$2.85 million
Malaysia's Perlis Customs seized more than 510,000 smuggled e-cigarettes, involving more than US$2.85 million
In August, Malaysia's Perlis Customs raided Kampung Kawlan, seizing 517,394 e-cig devices/accessories in a Padang Besar warehouse. Haul: over RM12m (≈US2.85m),unpaidtaxesRM2.6m(≈US620k); 19yo guard arrested. Probes: e-cigs for Thailand, arrived via KLIA, to cross border illegally (pickup/container truck or Kelantan if blocked). Case under 1967 Customs Act §133(1)(f): max RM500k (≈US$120k) fine/7yrs jail, or both.
Sep.22 by 2FIRSTS.ai
Police in Turkey's Isparta Province Seize 29 Illegal E-Cigarettes in Special Operation, 1 Suspect Identified
Police in Turkey's Isparta Province Seize 29 Illegal E-Cigarettes in Special Operation, 1 Suspect Identified
Police in Isparta province, Türkiye, seized 29 illegal e-cigarettes and a suspect has been filed for investigation.
Sep.24 by 2FIRSTS.ai
Philip Morris International launches IQOS ILUMA i "Leaf Green" Limited Edition in South Korea, with pre-sales starting September 4th
Philip Morris International launches IQOS ILUMA i "Leaf Green" Limited Edition in South Korea, with pre-sales starting September 4th
Philip Morris International Korea announced the launch of the limited edition "Leaf Green" color of IQOS ILUMA i and ILUMA i ONE, and will start pre-sales in IQOS direct stores and official malls nationwide from September 4, with prices of US$68 and US$45 respectively.
Sep.05 by 2FIRSTS.ai