Pro-health tax to be expanded to tobacco, vape, alcohol

Pro-health tax to be expanded to tobacco, vape, alcohol

Prime Minister Anwar Ibrahim says the increase in non-communicable diseases must be stemmed.

vape
Vapes will be included under the expansion of a tax to promote a healthier lifestyle.
KUALA LUMPUR:
A tax to promote a healthier lifestyle will be expanded to include tobacco, vape, and alcohol, Prime Minister Anwar Ibrahim said today.

Such “pro-health” taxes currently cover sugary drinks.

The tax began in 2019 as an excise duty of RM0.40 per litre levied on all ready-to-drink packaged beverages containing more than 5g of sugar per 100ml.

The tax was raised to RM0.50 in 2023. Under Budget 2025, it was proposed that the excise duty for sugar-sweetened beverages be raised to 90 sen per litre.

Meanwhile, the current tobacco tax in Malaysia is 58.6% of retail prices.

Anwar said the government must be firm in tackling health risks.

“The expanded tax is not just about revenue, but to encourage a change in behaviour and curb the increase in non-communicable diseases (NCDs), which is becoming increasingly worrying,” he said when tabling the 13th Malaysia Plan in the Dewan Rakyat.

It was previously reported that almost 2.3 million adults suffer from NCDs such as diabetes, heart disease, and hypertension.

Anwar said there was a large number of diabetics in Malaysia, adding that the country had one of the highest rates in the Asean region.

“There is no reason for sugar to be cheap and its consumption encouraged,” he said.

He added that the pro-health tax was aimed at sending a clear message to the public to ensure that they do not suffer from such diseases.

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