KUALA LUMPUR: RM183.1mil in total was taxed from electronic cigarettes and vape products in three years between 2021 and 2024, says Prime Minister Datuk Seri Anwar Ibrahim.<\/p>\n
This figure includes e-cigarettes containing nicotine and those without, said Anwar who is also Finance Minister in a written parliamentary reply to Datuk Dr Ahmad Yunus Hairi (PN-Kuala Langat).<\/p>\n
From the total figure, RM100.3 million was collected for nicotine-containing smoking products, he added.<\/p>\n
Both nicotine and non-nicotine liquid or gel used in electronic cigarettes and vapes were subject to an excise duty at a rate of 40 cents per milliliter.<\/p>\n
\u201cIn addition, all types of electronic and non-electronic cigarette devices, including vapes, are subject to excise duty, but at an ad-valorem rate of 10%,\u201d he said.<\/p>\n
Taxation for non-nicotine liquid and gel commenced on Jan 1, 2021, while for nicotine counterparts, it commenced on May 1, 2023.<\/p>\n
He said the tax collection would be channelled to the government\u2019s consolidated fund, as required by Article 97(1) of the Federal Constitution.<\/p>\n
\u201cAny withdrawals from this fund to finance administrative and developmental expenditures, including health care programmes and projects, will need to go through the annual national budget preparation process,\u201d he said.<\/p>\n
It was previously reported that the Galen Centre for Health and Social Policy has urged the government to earmark half of the revenue taxes imposed on nicotine and non-nicotine liquids to support public health initiatives.<\/p>\n
According to them, vape tax revenue should be used to rectify the consequences of unrestricted and unprohibited marketing and sales of disposable nicotine vape devices.<\/p>\n
It also noted that the Finance Minister\u2019s budget speech on 24 February 2023 made references to allocating the taxation from vape products for health.<\/p>\n
Tax for vape nicotine liquids was introduced in Budget 2023 which also meant that nicotine liquids and gels were exempt from the Poisons Act 1952.<\/p>\n
The move has sparked criticism from health experts and doctors who expressed concern about the legalisation of vape and e-cigarettes.<\/p>\n
Source\uff1ahttps:\/\/www.thestar.com.my\/news\/nation\/2024\/10\/23\/rm1831mil-taxed-from-e-cigs-vape-products-channelled-to-healthcare-efforts-says-anwar<\/p>\n
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