One of the world’s largest e-cigarette markets is very close to us, and Malaysia E-Liquid will be legalized when the Malaysia government officially plans to tax e-cigarette products containing nicotine.
Malaysia e-liquid and legalization of nicotine
Nicotine containing consumer products are currently illegal in Malaysia, but nicotine free e-cigarettes and E-Liquid have been legalized in Malaysia.
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Several Malaysian news organizations have reported that the government has included the consumption tax on vape liquid containing nicotine in the 2022 budget proposal, which was announced by Finance Minister Tengku Zafral Aziz.
On October 26th, Health Minister Khairy Jamaluddin informed the World Health Organization (WHO) that Malaysia would regulate vape products to prevent contact with young people.
Supporters, vape consumers, and industry trade groups in Malaysia have been actively lobbying to promote the legalization of vape products containing nicotine, and have successfully promoted the reports of major Malaysia newspapers to the public.
Malaysia will become a rare exception in Southeast Asia – legalizing e-cigarette products containing nicotine in regions with widespread bans on e-cigarettes in neighbouring countries.
Earlier this week, rumors that the government would soon legalize nicotine vape caused concern among traditional tobacco control groups in Malaysia.
Will the proposed Malaysia E-Cig tax strengthen the black market electronic cigarette market?
The tax rate for electronic cigarettes calculated in the government’s 2022 budget is RM1.2 per milliliter. RM (Malaysian currency) is equivalent to US $0.24,
Therefore, RM1.2 per milliliter is equivalent to US $0.29 per milliliter, which is three times the current tariff of RM0.40 per milliliter for non nicotine Malaysia E-Liquid.
This tax will take effect on January 1, 2022.
Currently, e-cigarette devices impose a consumption tax of 10% and a tax rate of 0.4 RM/ml on nicotine free Malaysia E-liquid.
At the above tax rate, an additional tax of RM72 (US $17) will be charged for each 60 ml bottle of vape.
“Such high tariffs will prevent many people from legally buying vape brands, but will force them to continue buying on the black market.”.
In addition to encouraging the already booming illegal market, this extreme electronic cigarette tax will not encourage smokers to switch to electronic cigarettes.
“We hope the government can reconsider the tax rate imposed because the tax rate is quite high,” Rizani Zakaria, chairman of the Malaysian Electronic Tobacco Industry Advocacy Organization (MVIA)
told the New Strait Times. “The tax increase will make electronic cigarette products more expensive in Malaysia than cigarettes.”
At the same time, e-cigarette consumers and trade organizations are trying to convince the government that excessive taxation will not help anyone. Malaysia’s anti e-cigarette organizations are demanding that the government reverse its policy and lift the current ban on nicotine containing products.
