#Budget2021: Govt To Impose 10% Tax On Vape And E-Cigarettes Beginning 2021

The government also proposes to start collecting tax on all tobacco products on duty-free islands.

Cover image via SAYS (Facebook) & The Malaysian Reserve

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz has announced that the government plans to impose 10% excise tax on all electronic and non-electronic cigarettes

During the tabling of Budget 2021 today, 6 November, Zafrul said the new tax will be applied to vaping devices as well as their liquids.

According to him, vape liquids will be subjected to an excise tax of RM0.40 sen/ml.

The new tax will begin on 1 January 2021.

Meanwhile, Zafrul also said the government will stop issuing new cigarette import licences

Here are other cigarette-related measures announced in Budget 2021:

- Tightening the renewal of import licence for cigarette through review of license conditions including the imposition of import quota
- Limiting cigarette transshipment activities to certain ports only
- Imposing tax with drawback facility on all imported cigarettes for purposes of transshipment and re-export
- Banning transshipment and export cigarettes using small boats
- Imposing taxes on cigarettes and tobacco products on all duty-free islands

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Image via SAYS

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