INCREASING tobacco tax is a strategic measure to protect the health of Malaysians, particularly vulnerable groups such as children, teenagers, and low-income households, health and economic experts have argued.
Smoking has long been identified as a leading cause of serious chronic diseases including lung cancer, heart disease, and stroke. Beyond the individual, second-hand smoke also poses significant risks to those nearby, making tobacco use a wider public health concern.
Prime Minister Datuk Seri Anwar Ibrahim recently stated that the government is considering a tobacco tax increase as part of its dual commitment to public health and fiscal reform, noting that no revision has been made to the rate since 2014.
“At present, tobacco tax in Malaysia accounts for 58.6 per cent of retail prices, but there is no established mechanism for regular review or adjustment,” he said, adding that a revision is long overdue.
Economists have previously recommended raising the tobacco tax rate to between 60 and 75 per cent. Higher prices, they argue, are particularly effective in discouraging smoking among youths and lower-income groups, who tend to be more sensitive to price changes.
“Raising cigarette prices is not just a revenue measure—it’s a powerful tool for prevention,” noted one public health policy observer. “It can significantly reduce initiation rates among adolescents and lower the addiction burden among poorer households.”
Evidence shows that when access to tobacco becomes more difficult, the risk of early addiction falls substantially—an outcome viewed as an essential investment in the country’s long-term wellbeing.
Critics of higher tobacco taxes often cite concerns over smuggling, but public health advocates insist this can be addressed through stronger enforcement, inter-agency coordination, and tighter monitoring.
“Smuggling should not be used as an excuse to dismiss a policy that could save thousands of lives,” said another health expert.
Ultimately, proponents argue that progressively increasing tobacco tax is not merely an economic policy, but a life-saving intervention designed to reduce suffering, improve population health, and secure a healthier future for all Malaysians. - August 8, 2025
