Malaysia

Tax collection on vape with nicotine to begin in May: MoF

Manufacturers must register with Customs Dept by month’s end, says ministry

Updated 3 years ago · Published on 02 Apr 2023 4:56PM

Tax collection on vape with nicotine to begin in May: MoF
The Finance Ministry’s statement follows the issuance of a federal gazette on March 31 on the new tax on e-cigarettes and vape with nicotine, which is 40 sen per ml from April 1. Another federal gazette issued has removed nicotine in gels and liquids used in these products from the list of controlled substances under the Poisons Act 1952. – ALIF OMAR/The Vibes file pic, April 2, 2023

KUALA LUMPUR – Producers of e-cigarettes and vape with nicotine have until April 30 to register their products with the Royal Malaysian Customs Department to avoid penalties, according to the Finance Ministry (MoF).

This is to facilitate tax collection for these products starting in May, MoF said in a statement today.

“Vape industry players, specifically local manufacturers of liquid or gel with nicotine, are given from April 1 to April 30 to register their manufacturing activities with Customs.

“This early registration is to ensure that the manufacturers will avoid paying a compound for late registration. 

“The early registration will also ensure industry compliance towards tax collection that begins this May,’’ MoF said.

The registration of these products under the Excise Act 1976 can be done online at https://myexcise.customs.gov.my/myexcise.

The ministry’s statement follows the issuance of a federal gazette on March 31 on the new tax on e-cigarettes and vape with nicotine, which is 40 sen per ml from April 1.

Another federal gazette issued has removed nicotine in gels and liquids used in these products from the list of controlled substances under the Poisons Act 1952.

The gazette, which exempts nicotine in vape and e-cigarettes from the poisons list, is signed by Health Minister Dr Zaliha Mustafa and was posted on the federal legislation website.

The gazette on the Poisons (Amendment of Poisons List) Order 2023, states that nicotine, “used for smoking through electronic cigarettes and electric vaporising devices, in the form of liquid or gel”, is exempted from the list of poisons.

Also exempted are tobacco and nicotine in the “form of patch or gum to be used as a smoking cessation aid”. 

The move to exempt nicotine in vape and e-cigarettes from the list of poisons is reportedly against a unanimous decision by the Poisons Board.

Critics of the exemption also say it should not have been gazetted until and after a new bill to regulate the use of nicotine-based vape and e-cigarette is in place.

On such a bill, Dr Zaliha yesterday said it would be tabled in the next parliamentary sitting, next month. – The Vibes, April 2, 2023

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