Malaysia

Government proposes a 10-fold increase in vape tax

An estimated RM244.8 million has been spent so far to treat E-Cigarette or Vaping Product Use-Associated Lung Injury (EVALI) caused by vaping.

Updated 10 months ago · Published on 07 Oct 2025 4:19PM

Government proposes a 10-fold increase in vape tax
The proposed tax rate is from 40 sen to RM4 per ml, and this is a proposal from the MOH for consideration by the MOF - October 7, 2025

THE Ministry of Health (MOH) has proposed a 10-fold increase in tax on electronic cigarettes or vape liquid from 40 sen to RM4 per millilitre (ml).

Deputy Minister of Health, Datuk Lukanisman Awang Sauni said the proposal has been submitted to the Ministry of Finance (MoF) for consideration in the 2026 Budget to align the tax rate on vape products with conventional tobacco products.

“I would like to share information on the summary of the harmonisation of smoking products. One cigarette is equivalent to 10 puffs, one pack of cigarettes contains 200 puffs, while 1ml of vape liquid is equivalent to 100 puffs.

“The proposed tax rate is from 40 sen to RM4 per ml, and this is a proposal from the MOH for consideration by the MOF,” he said told the Dewan Rakyat today.

He was responding to a supplementary question from Datuk Wan Saiful Wan Jan (PN–Tasek Gelugor) regarding the government's assurance to align the tax rate on nicotine liquid in vape with the cigarette tax in Budget 2026.

He said that a comparison of the contents showed that one pack of cigarettes was equivalent to approximately 2ml of vape liquid, but the tax for 1ml of nicotine was only 40 sen, about 10 percent of the cigarette tax rate.

“This has caused a huge tax gap and is pushing consumers to switch to vaping. In addition, there is no floor price set for vaping products like the one imposed on cigarettes,” he stressed.

Meanwhile, Lukanisman reiterated that the MOH is moving towards a comprehensive ban on vaping, with the proposal expected to be presented to the Cabinet this year.

According to him, an estimated RM244.8 million has been spent so far to treat E-Cigarette or Vaping Product Use-Associated Lung Injury (EVALI) caused by vaping.

He explained that the figure was obtained through the Regulatory Impact Analysis (RIA) carried out by the Ministry of Health previously.

“If this situation continues, we may have to spend between RM300 million to RM400 million by 2030.

“Therefore, to avoid waste in the treatment of diseases caused by vaping, the MOH will submit a memorandum to Cabinet to consider a complete ban on vaping products.

"Rather than continuing to fight cigarettes and vaping, it is better to eliminate them because they are a form of harm that is spreading," he said.

He added that to date, 46 cases of EVALI with serious lung complications have been recorded, while 45 non-EVALI cases involving other health complications also stemming from vaping use.

“Before the number of cases increases even higher, it is better for us to move towards a complete ban on vaping as done by several ASEAN countries including Brunei, Laos and Singapore.

“So far, 37 countries in the world have banned vaping, and the move has proven to have a positive impact,” he said. - October 7, 2025

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