KUALA LUMPUR – British American Tobacco Bhd (BAT Malaysia) has praised the government over its proposal to impose excise duties on nicotine-based liquid products for electronic cigarettes or vape devices.
BAT Malaysia managing director Nedal Salem said this indicates the government is looking to legalise nicotine vapour products.
“The introduction of excise duty for nicotine vapour products is a step in the right direction for tobacco harm reduction in Malaysia,” Nedal said in a statement today.
“Regulation will not only allow vape users access to reduced-risk alternatives to smoking, but also ensure the products used are compliant to quality and safety standards.”
He was referring to the Budget 2022 announcement by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, who said excise duties will be levied on these products.
Tengku Zafrul revealed the duty excise on vape products while proposing an allocation of RM32.4 billion for the Health Ministry next year.
However, he did not elaborate on the percentage rates or any quantum for the proposed taxes on nicotine-based products.
Furthermore, Tengku Zafrul made no mention of increasing any sin taxes next year.
Nedal said BAT Malaysia has a “clear purpose”, which is to build “a better tomorrow” by reducing the health impact of its business and creating multi-stakeholder value.
“The announcement today plays a key role in this,” it said.
However, Nedem said BAT Malaysia believes any taxation framework for reduced-risk products must be “well-considered”, and encourage people to switch from traditional cigarettes without driving consumers to cheap, unregulated black market alternatives.
“If not, the mistakes of high tobacco excise rates will be repeated where currently, the government loses RM5 billion annually.” – The Vibes, October 29, 2021
