Malaysia to Place Excise Tax on Vapor Starting 2021

All imported electronic cigarettes, e-juices and other vaping products, including non-nicotine types, will face an excise duty beginning Jan. 1, 2021. Exceptions will be given to local manufacturers, Customs Department director-general Abdul Latif Abdul Kadir said today.

Excise duty would be charged on the devices at an “ad valorem” (according to value) rate of 10 percent, while liquids and gels will be charged a rate of SEN0.40 for each millilitre, he said.

Abdul Latif said local manufacturers would be licensed under Section 20 of the Excise Act 1976 with a licence payment of RM4,800 a year ($1,779), while the warehouse licence fees under Section 25 of the same Act would be RM2,400 a year, according to an article in Free Malaysia Today.

“Local manufacturers have to apply at the respective zone or state Customs Department offices where the factory or warehouse is located before Dec 15, 2020,” he said in a statement today.

Among other things, the applicants will have to declare the raw ingredients list, finished products list, manufacturing flow chart, annual manufacturing capacity, and acknowledgment of nicotine content in liquid or gel.

“Licence holders are required to comply with licensing guidelines and to attach a bank guarantee to secure the duty or tax,” he said.

Abdul Latif said manufacturers could refer to the FAQ page regarding the excise duty at the Customs website.