KUALA LUMPUR: The high tax rate for vape proposed to the government by Japan Tobacco International (JTI) will only benefit the tobacco industry and hinder the vape industry's efforts to encourage smokers to switch to less harmful alternatives.
In disagreement with JTI's proposal, the Malaysian Vape Chamber of Commerce (MVCC) Head of Information Ashraf Rozali said imposing high taxes and equating vape with cigarettes will also result in the high price of vape products, making them much more expensive than traditional cigarettes.
Currently, each unit of vape product is sold between RM12-RM20, and this does not include vape devices which are priced much higher.
A pack of cigarettes is between RM12-RM17.
"If the tax is raised for vape products, it will prevent smokers from switching to vape products that have been proven to be less harmful than traditional cigarettes.
"Their proposal is only for their own benefit," Ashraf said in a statement today.
Ashraf also stated that the tobacco industry has demonstrated over the years that high taxes will result in the issue of smuggling to avoid paying taxes.
"The incidence of illegal cigarettes due to excessive taxes is something that is always mentioned in the tobacco industry.
"It has become a global issue as the high taxes have made Malaysia the No.1 country with the highest rate of illegal cigarettes.
"If vape taxes are raised on par with tobacco tax, then the local vape industry will only suffer the same fate as the tobacco industry," he said.
Ashraf also added that the most critical point now is regulations, which need to be introduced for the vape industry.
Further, these regulations must be differentiated from tobacco as vape is a less harmful product.
Ashraf said the vape industry has long championed the need for regulations to be introduced, especially for the use of nicotine e-liquids and ensuring quality and safety standards for vape products.
These regulations are necessary to allow the vape industry to grow and enable smokers to switch to vape.
Vape is a less harmful alternative compared to traditional cigarettes, he said.
International studies have proven this fact, and many countries such as the UK and New Zealand have taken such an approach to advise smokers to switch to vape products, Ashraf said.
"Vape regulations in these countries differentiate between vape and traditional cigarettes by allowing vape to be promoted and advertised as a method that can help people quit smoking," he said.
"We hope that in the tabling of the 2022 Budget next month, the government will introduce rules and taxation frameworks for the vape industry that are different from the tobacco industry.
"The vape industry is ready to support the government and requests that the industry is involved in any consultation sessions on the regulations for vape," Ashraf said.