Malaysian Prime Minister Announces Plan to Impose Health Tax on Vapes and Related Products

Aug.01

Malaysian Prime Minister Anwar Ibrahim announced in the Lower House that the health promotion tax, previously limited to sugary drinks, will be expanded to include tobacco, vapes, and alcohol. The Health Ministry expects to generate around $9.4 billion in revenue.

Key points:

·Health tax expansion: Malaysian Prime Minister Datuk Seri Anwar Ibrahim announced that the health tax will be expanded to include tobacco, e-cigarettes, and alcohol products.

·Policy goals: This move aims to curb the rising trend of non-communicable diseases and encourage behavior change.

·Significant allocation: The 13th Malaysian Plan will allocate 40 billion ringgit (approximately $9.4 billion) to the health sector to reduce the out-of-pocket medical expenses for the public.

[2Firsts news flash] According to The Star reported on July 31st, Malaysian Prime Minister Datuk Seri Anwar Ibrahim said that the health tax will be expanded to cover tobacco, e-cigarettes, and alcohol products.

The Prime Minister emphasized the importance of addressing health risks, pointing out that this is not just to increase tax revenue.

"This is in order to encourage behavior change and curb the worrying rise in non-communicable diseases."

He made the statement when he submitted the 13th Malaysia Plan (13MP) to the Lower House of Parliament (Dewan Rakyat) on July 31st.

Previously, the tax was only levied on sugary beverages.

Anwar added that through the thirteenth Malaysia Plan, the Ministry of Health will receive funding of up to 40 billion ringgit (approximately 9.4 billion US dollars).

"This can help reduce the out-of-pocket expenses people incur for medical services."

He said.

He further explained that there will also be upgrades and construction of government health facilities.

References:

[1] Pro-health tax to cover tobacco, vape, alcohol too, says PM Anwar

Also Read:

[1] Malaysia to Launch “Save the Lungs” Enforcement Campaign in August, Plans Legislation to Ban Open-System E-cigarettes

[2] Vuse Sales Halt Offset by Cost Controls; BAT Malaysia Reports $17 Million Net Profit in H1

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