KUALA LUMPUR: 73 per cent of Malaysians believe the increase in the excise tax rate for vape liquids at RM1.20 per millilitre is too high, according to an opinion poll commissioned by Malaysian Vape Industry Advocacy (MVIA).
These revelations came from the '#Tax and Regulate MY Vape: Your Say' opinion poll conducted by Green Zebras Sdn Bhd (GZSB), a leading market research company in Malaysia.
Further, the opinion poll also revealed that 85 per cent of Malaysians believe this high rate of taxation can lead to black market growth.
Almost all, or 91 per cent, believe the government should set a level of taxation on vape products that prevent consumers from switching to black market products, and 75 per cent say that taxation must remain low to keep prices competitive.
MVIA president Rizani Zakaria said these findings reinforce views from the industry players that the tax rate for vape liquids is too high.
"This will cause prices of vape liquids to skyrocket. The government need to be mindful of the negative repercussions when it comes to formulating the tax policy as it will impact the local vape industry," he said in a statement today.
MVIA is a non-profit advocacy group that supports local vape entrepreneurs and businesses.
Rizani said given that the customs has recently announced the postponement in implementing the newly announced excise rate, this opinion poll's results are timely.
"We hope it will provide an insight to the government that a sensible approach needs to be taken when it comes to the taxation framework for the industry, and we urge the government to maintain the rate at RM0.40 per millilitre," he said.
The opinion poll also revealed that Malaysians are encouraged by the progress made by the vape industry, as the balanced taxation framework can generate additional revenue for the government and improve the quality and safety standards of vape products.
According to those polled, implementing a proper taxation framework will allow consumers to access legal and regulated products.
"Clearly, we are moving in the right direction. Taxation and regulations for the industry is a step in the right direction.
"This is to ensure consumers purchase products that are regulated with product and safety standards," Rizani said.
At the same time, he said the policy also needs to be balanced to ensure that vape products are not taxed and regulated the same way as cigarettes, given vape products are proven to be less harmful and can help smokers to quit smoking.
"We also read that the Ministry of Health is looking to table new laws in Parliament soon to regulate vape products.
"To date, we have not had a proper consultation with the government
on the regulations, and we urge the government to involve us in discussions before making any decision," Rizani said.
With the objective of understanding Malaysian's perception of vaping, the #Tax and Regulate MY Vape: Your Say delved into the opinions of the local population on their thoughts on regulations and the recently announced tax rates on vape liquids.
Additional findings from the survey will be released in the coming weeks.
This survey comprises a sample size of 1,000 Malaysian adults and reflects the perception of all Malaysian adults nationwide.