KUALA LUMPUR: The government plans to impose excise duty on liquids or gel that contain nicotine used in electronic cigarettes or vape.
Prime Minister Datuk Seri Anwar Ibrahim said although vape with nicotine is still illegal, the product is still being sold widely and is estimated to be worth more than RM2 billion.
"Would it not be great if it is monitored and taxed to discourage the usage of vape," said Anwar, who is also the finance minister, during the tabling of Budget 2023 in Dewan Rakyat.
He said the government also supported Generational Endgame (GEG) and agreed that half of the excise duty be reallocated to the Health Ministry in an effort to improve healthcare services.
Furthermore, to reduce leakages, the government will intensify enforcement among government agencies together with industry players to curb revenue leakages and subsidies from the smuggling of diesel, alcohol and cigarettes.
"The Inland Revenue Board and Royal Malaysian Customs Department will re-implement the voluntary acknowledgement programme starting June 1, 2023, until December 31, 2024," said Anwar.