
The Social and Economic Research Initiative (Seri) described the tobacco duty hike as a key step towards stronger public health policies, as higher taxes would discourage smoking and improve public health outcomes.
It pointed out that this would be the first tobacco duty hike in a decade, adding that cigarettes have become more affordable over the years relative to people’s income and inflation.
“This is a step in the right direction as the country continues to wrestle with nicotine-related public health concerns. We look forward to further positive developments and hope this becomes an annual occurrence,” said Seri managing director Rashaad Ali.
Seri senior researcher Daniel Kittu said the hike of two sen per cigarette was far below what the think tank had called for, but it was still noteworthy.
He also lauded the tax increase for heated tobacco products and the exemptions for some nicotine replacement therapy products that would help smokers kick the habit.
Cigarette excise duties will go up by two sen per stick, and by RM40 per kg for cigars, cheroots and cigarillos, from Nov 1.
Heated tobacco products will also see a RM20 increase per kg of tobacco content, while excise duty on liquor products will go up by 10%.
The cigarette tax has not been raised since September 2014, when it was increased from 28 sen to 40 sen per stick.