PETALING JAYA: The government has collected RM141.1 million in tax revenue from vape products, Prime Minister Datuk Seri Anwar Ibrahim revealed in a parliamentary written reply, yesterday.
Anwar, who also serves as Finance Minister, said between 2021 and 2024, RM141.1 million was collected in tax revenue from vape liquid.
Of this amount, RM82.51 million came from liquid without nicotine, and RM58.55 million from vape liquid containing nicotine.
The taxation includes an excise duty of 40 sen per millilitre on vape liquid, implemented on May 1, 2023.
Additionally, a 10% ad-valorem rate has been applied to electronic and non-electronic smoking devices, including vapes, since January 1, 2021.
He said the government is taking steps to regulate vape products more comprehensively.
The Control of Smoking Products for Public Health 2024 (Act 852) was gazetted on January 2 this year with the Health Ministry is also finalising the smoking products rules under this Act, which will include regulations on vape products.
“Both the Act and the Rules are expected to be enforced in August 2024. Once this regulation comes into effect, the regulatory mechanism on vape products will become more comprehensive and effective,“ Anwar added.
He said the collected tax revenue will be channeled to the government’s consolidated fund, as mandated by Article 97(1) of the Federal Constitution.
