KUALA LUMPUR: Harm Awareness Association (HRA) has urged the government to review taxes on vape, electronic cigarette devices and vape liquids.
The new tax was announced by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz when tabling the 2021 Budget in November.
The HRA said a 10 per cent excise duty on all types of electronic devices, as well as 40 sen per milliliter for liquids used in electronic cigarettes would make it much more expensive.
This was a huge blow to consumers and operators of the local vape industry at a time when the economic situation was severely affected by the outbreak of the Covid-19 epidemic, it added.
"Any increase in the price of vape devices and products that are an alternative to smoking habits will most likely encourage consumers of vape products to return to smoking habits. Since vape users are mostly sensitive to price, they will be more likely to buy cheaper contraband cigarettes.
"To date, more than 10,000 Malaysians have signed a petition rejecting taxes on all types of electronic and non-electronic cigarette devices including vape liquids next year," it said.
Malaysian Organisation of Vape Entity (MOVE), which is under HRA, said the association disagreed with the proposal after studying in more detail, discussing with the industry and gathering public input through petitions.
"Although we have said before that the proposed tax on vape liquid is misleading, we also believe that the proposed tax on devices is an unproductive measure that will adversely affect public health as it prevents adult smokers from switching to less dangerous alternatives," MOVE president Samsul Kamal Ariffin said in a statement.
"We are aware that there is a need for the government to generate more revenue, but it should not be done recklessly without conducting research and discussions with all parties. Proposals made openly are implemented without consultation with Malaysian consumer groups and industry," he added.
Samsul Kamal said the government's drastic action would cripple the vape industry and many entrepreneurs would go bankrupt if this tax was implemented in 2021.
"The imposition of taxes should come along with comprehensive regulations and input from various parties including industry to curb illegal trade and ensure the safety of consumers in Malaysia," he added.
The HRA has initiated a petition through Change.org with the support of more than 10,000 people, for the government to reconsider imposing a tax on vape devices and liquids in Malaysia.