Malaysia Plans To Increase The Tax On E-cigarette Liquid By Ten Times: The Ministry Of Health Suggests A Tax Of 4 Ringgit Per Milliliter, While The Industry Warns That It May Stimulate The Growth Of The Black Market.

According to the Tobacco Reporter on October 8th, before planning to completely ban electronic cigarette products, the Ministry of Health (MOH) of Malaysia recently submitted a proposal to the Ministry of Finance (MOF), suggesting that the consumption tax on electronic cigarette oil be raised to 4 ringgit per milliliter (approximately 0.94 US dollars) - a 10-fold increase compared to the current 40 cents. This proposal is expected to be reviewed before the 2026 fiscal budget is submitted to the parliament.
The Deputy Minister of Health, Lukanisman Awang Sauni, stated in the parliamentary question session that this tax increase proposal is aimed at achieving tax fairness and aligning with the tax standards for traditional cigarettes.
He explained that a pack of 20 cigarettes is approximately equivalent to 200 puffs, while 1 milliliter of electronic cigarette oil is approximately equivalent to 100 puffs. Currently, the tax on cigarettes is 8 ringgit per pack, while the tax on electronic cigarette oil is only 40 cents per milliliter, meaning "the nicotine tax burden of electronic cigarettes is only one-tenth of that of cigarettes", resulting in a significant price gap.
Member of Parliament Datuk Wan Saifulruddin Wan Jan pointed out that this price gap has led some smokers to switch to electronic cigarettes instead of quitting smoking, "The low tax rate of electronic cigarettes is weakening the effect of public health policies."
However, this proposal has faced strong opposition from the industry.
The Secretary-General of the Malaysian Electronic Cigarette Council (MVCC), Ridhwan Rosli, said: "A tenfold increase in tax is extremely radical and merely masks the real problem. The government has been changing policies almost every year, and the previous policy has not yet fully taken effect." He disclosed that the industry has recommended that the upper limit be set at 80 cents per milliliter, arguing that legitimate enterprises have already incurred significant costs in registration and compliance, "They shouldn't pay for the actions of the illegal market." The industry is concerned that this move will stimulate illegal trade and smuggling activities.
Meanwhile, Lukanisman confirmed again that the Ministry of Health is advancing the plan to completely ban electronic cigarettes and their products, and will submit it to the cabinet for review within the year. The ban will be implemented in stages and will be promoted through law enforcement, education, and community support.