KUALA LUMPUR: E-cigarette players breathed a sigh of relief when the government announced that the business and its products would be regulated through taxation.
Malaysian Retail Electronic Cigarette Association (MRECA) president Datuk Adzwan Ab Manas said although industry players might face an initial decline in sales once taxation comes to force, he said it would only be momentarily.
"Once it has been recognised and regulated, then it can be officially promoted as a method of harm reduction and safer product compared with cigarettes.
"With this, we believe (cigarette) smokers would slowly transition to vape products which have been regulated by the government," he said when contacted.
He also hopes that the government would reinvest the taxes the sale of vape products to set up clinical test centres as a move to regulate locally produced flavours.
Malaysian Organisation of Vape Entity (Move) president Samsul Kamal Ariffin said that it would be wise if the government imposed a much lower tax on e-cigarettes compared with tobacco cigarettes.
He said taxation structure on vape and e-cigarette products should not be the same as for cigarettes.
He said the model in the United Kingdom (UK) should be used, where vape products were offered as an alternative way to quit smoking.
"We are all right with the taxation, but now we also hope the government would take out vape products under the Generational Endgame (GEG) bill.
"Since it is being regulated, why not the Health Ministry do its own research first and maybe it can be recognised as a method of quitting smoking, as it is done in the UK," he added.
Under the new 2023 Budget, the government will impose an excise duty on nicotine-based products used in electric cigarettes.
Prime Minister Datuk Seri Anwar Ibrahim said nicotine vape liquids are still illegally sold with an estimated over RM2 billion in sales.
He also said the government would channel half of the excise duties to the Health Ministry in a move to support GEG.
Consumers' Association of Penang education officer N.V. Subbarow was not happy with the announcement today, as CAP was hoping for a total ban on the products, but instead the government was taking steps to regulate them.
He also expressed his frustration that the government did not increase taxes on cigarettes.
"The government should have increased the tobacco tax. These companies should be held responsible for the harm caused by their products," he added.