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CAP calls for sales tax on cigarettes in 2025 Budget

GEORGE TOWN: The Consumers' Association of Penang (CAP) has called for sales tax to be imposed on cigarettes in the 2025 Budget.

The last sales and service tax was imposed in 2018 on tobacco products.

No tax has been levied on cigarettes for six years.

CAP president Mohideen Abdul Kader expressed hope that the

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim would announce a sales tax on cigarettes in tomorrow's budget.

"Smokers spent about RM500 every month. Even healthy food doesn't cost that much. This is a huge disappointment.

"If the sales tax is imposed, thousands of families will save a lot of money spent on cigarettes.

"A sales tax would leave thousands of families with more money to spend on cigarettes

"CAP expects a mandatory sales tax on cigarettes in the 2025 Budget if the government wants to reduce the current five million cigarette smokers," he said in a statement.

Elaborating, Mohideen said evidence from other countries showed that price increases on cigarettes were highly effective in reducing demand.

He said higher taxes induced some smokers to quit and deter others from starting to smoke.

He said they also reduced the number of ex-smokers who returned to cigarettes and consumption among continuing smokers.

"As this fact has been confirmed in other countries, CAP expects our Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim to announce a sales tax on cigarettes."

It was reported that the Addiction Medicine Association, Malaysia (AMAM) and Federation of Private Medical Practitioners Associations, Malaysia (FPMPAM) urged the government to raise the excise tax and minimum price of cigarettes in the 2025 Budget.

FPMPAM believed that increasing both measures would help curb tobacco consumption, boost government revenue, and support tobacco control initiatives.

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