Malaysia

Taxing vape industry may not bring desired returns: Adham

Health minister warns of long-term effect on government coffers due to enforcement, treatment

Updated 5 years ago · Published on 04 Dec 2020 11:00AM

Taxing vape industry may not bring desired returns: Adham
Health Minister Datuk Seri Dr Adham Baba says the government may be forced to bear the cost of treatment due to health complications caused by consumption of vape products. – Bernama pic, December 4, 2020

by Amar Shah Mohsen

KUALA LUMPUR – While the boom in e-cigarette and vape sales offers the government an opportunity to generate income through taxes, the eventual impact it may have on the country’s finances and the people’s health could be dire. 

Health Minister Datuk Seri Dr Adham Baba pointed out that the government may be forced to bear the cost of treatment due to health complications caused by consumption of the products. 

Additionally, the government will also have to invest more on enforcement activities as the manufacturing and production of vape liquids are hard to control and require constant monitoring. 

He said it was necessary to review claims that the vape industry is capable of stimulating the country’s income through tax and opening job opportunities to over 50,000 Malaysians.

“It is feared that the government’s hope to generate revenue will not offer a return as much as we expect, as we will be forced to bear the financial burden of enforcement operations and disease treatment. 

“It could also lead to a rise in e-cigarettes and vape liquids on the black market,” he said in a parliamentary reply yesterday (December 3). 

Adham was responding to a question from Datuk Abdullah Sani Abdul Hamid (PH-Kapar) on whether the government will be committed to assisting the vape industry, said to be valued at over RM500 million annually. 

The minister said that considering the health effects of vaping, it would be inappropriate for the ministry to provide its commitment to the industry. 

“The ministry is responsible for the health of all Malaysians. We would like to urge the government to remain committed in its effort to regulate the industry tightly,” he said. 

Adham said that, among other things, e-cigarettes and vapes have been scientifically proven to cause biological cell damage and leave chemical impressions in the body. 

They have also failed to stop people from smoking cigarettes and led to an increase in the number of “dual users” (people who consume both conventional and electronic cigarettes), while the number of teenage consumers has also increased. – The Vibes, December 4, 2020

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