The Malaysian Ministry of Health (MOH) has proposed an increase in excise duty on vape liquids ahead of the government’s plan to ban electronic cigarettes and vaping products completely. The excise tax would be set at MYR4 ($0.94) per mL, a tenfold increase, according to The Edge Malaysia.
The proposal was submitted to the Ministry of Finance (MOF) for consideration, days before the 2026 budget is set to be tabled.
“This is the ministry’s recommendation to the MOF for review and approval,” said Deputy Health Minister Lukanisman Awang Sauni during a question and answer session. The deputy minister explained that a standard pack of 20 cigarettes is equivalent to 200 puffs and taxed at MYR8 per pack, while 1 mL of vape liquid is equivalent to 100 puffs but taxed at 40 sen per milliliter (for nicotine and non-nicotine liquids). This means vapers pay significantly less tax per milligram of nicotine than cigarette smokers, he said.
“Currently, one pack of cigarettes equals about 2 mL of vape liquid, but the tax on vape nicotine is only around 10% of cigarette tax. This disparity creates a large price gap,” said Datuk Wan Saifulruddin Wan Jan, who argued that the price gap encourages smokers to vape rather than quit altogether.
The proposal is facing pushback from the industry, however.
“A single-fold tax hike is already drastic in many ways. A tenfold is just sweeping the real issue under the rug,” said Ridhwan Rosli, Malaysian Vape Chamber of Commerce (MVCC) secretary-general. “It seems like they are changing their policy every year while the previous policy is just about to take place.”
Ridhwan stated that the industry is proposing a maximum tax rate of 80 sen per milliliter.
“As currently we are faced with a lot of new costs when it comes to going through the legal process of registration, etc., it is sad that the legal industry players are being punished for the wrongs of illicit products,” he said. There are worries that the drastic tax increase will increase illicit trade as well.
Additionally, the government plans a full ban on e-cigarettes and vapor products.
“The Health Ministry is now moving toward a full ban on e-cigarettes and vape products,” said Lukanisman. “The proposal will be tabled to the Cabinet this year for policy endorsement. The prohibition will be implemented in phases through enforcement, education, and community support.”