KUALA LUMPUR: From 2021 to this year, the total revenue generated from excise taxes on vape liquids stood at RM141.1 million.
The Finance Ministry in a parliamentary written reply yesterday said of the total, RM82.51 million was from liquids without nicotine and RM58.55 million was from vape liquids containing nicotine.
"Steps to enhance excise tax revenue from vape or electronic cigarettes can be implemented through enforcement of legislation governing tobacco products regulated by the Health Ministry.
"The Smoking Products Control Act for Public Health 2024 was enacted on Jan 2 this year and the Health Ministry is currently finalising Tobacco Product Regulations under this act, which include controls on vape products.
"Both the act and these Tobacco Product Regulations are expected to come into force next month (August).
"Upon enforcement, the regulatory mechanisms over vape products will be more comprehensive and effective," it said.
The ministry said this in response to Datuk Wan Saifulruddin Wan Jan (PN-Tasek Gelugor), who asked about the amount of vape liquid tax collection, measures to increase collection, and the mechanism of re-channelling the collection for the use of public health care.
On March 31, it was reported that Putrajaya gazetted an excise duty for vape liquids with nicotine content at 40 sen per millilitre, in its bid to tax liquid or gel products containing nicotine.
The ministry added continuous enforcement of vape or electronic cigarette products in collaboration with various agencies such as the Customs Department and the local authorities, could enhance the revenue from vape and electronic cigarette taxes.
"One of the collaborations to be implemented is joint operations between the Customs Department, the Health Ministry and the local authorities to go after unregistered manufacturers of vape and electronic cigarette liquids.
"The proposal to expand the use of cigarette tax stamps to vape and electronic cigarette products is also being suggested, to distinguish between legal and illegal products more effectively."
On the mechanism for redistributing vape liquid tax revenue, the ministry said; "Under Article 97(1) of the Federal Constitution, all revenues and funds obtained by the federal (government) must be channelled into the federal consolidated fund.
"Therefore, government revenues from various types of taxes, including vape liquid taxes, should be accounted for in the consolidated fund.
"Any expenditure from this fund for administrative and development expenses, including health care programmes and projects for public health maintenance, must follow the process, via the national annual budget preparation process."