Malaysian Vapor Group Wants Nicotine E-liquids Taxed

The Malaysian Vape Chamber of Commerce (MVCC) urged the government to impose excise duty on vape e-liquids with nicotine. In a statement, the MVCC also said “the vape industry must be quickly regulated, including regulating standards for vape e-liquids with nicotine.”

During the Budget 2021 presentation in November, it was announced that an excise duty on liquids for e-cigarettes and vaporizers at a rate of RM0.40 per ml would be imposed in January. Recently, the Royal Malaysian Customs Department announced that the tax shall be imposed only on non-nicotine vape liquids.

Syed Azaudin Syed Ahmad, president of MVCC, said, “Any taxation and regulation imposed should be holistic and take into account the current market situation,” according to an article in the Malay Mail. “In the local market, more than 97 percent of the vape e-liquids sold contain nicotine, with a similar trend seen in other countries. However, there is still no taxation and regulation covering vape e-liquids with nicotine.”

He added that if the tax “is implemented only for non-nicotine liquids, the move would be an exercise in futility as it does not take into account industry and consumer needs.”

MVCC estimated that the vape industry in Malaysia is worth more than RM2 billion annually.

“Countries such as UK, New Zealand and Canada acknowledge the role of vape in helping cigarette smokers quit smoking and switch to vaping, which has proven to be less harmful than smoking,” said Syed Ahmad. “These countries also have regulations that cover the industry and enable consumers to obtain products that adhere to standards that have been set.”