By Amar Shah Mohsen
SHAH ALAM, Aug 26 — The government collected RM288.45 million in taxes from electronic cigarettes, vapes, and nicotine and non-nicotine liquids and gels from 2021 to July this year, according to Finance Minister Datuk Seri Anwar Ibrahim.
This pales in comparison to tax revenue from cigarettes over the same period, which amounted to RM15.02 billion, about 52 times higher.
"Overall, the combined revenue from both products stood at RM15.30 billion between 2021 and July 2025," he said in a parliamentary reply dated yesterday, in response to a question from Tasek Gelugor MP Datuk Wan Saifulruddin Wan Jan.
Anwar, who is also prime minister, said all products categorised as demerit goods, such as cigarettes, tobacco products, as well as nicotine and non-nicotine liquids or gels used in electronic cigarettes and vapes, are subject to excise duty.
This is in addition to sales tax and import duty if the items are imported from abroad.
He said initially, excise duty was imposed on non-nicotine liquids or gels used in electronic cigarettes at a rate of 40 sen per millilitre.
"In addition, all types of electronic and non-electronic cigarette devices, including vapes, were subjected to excise duty at an ad valorem rate of 10 per cent. This excise duty came into effect on January 1, 2021.
"Subsequently, the scope of excise duty was expanded to include nicotine-based liquids and gels used in electronic cigarettes, including vapes, starting from May 1, 2023.
"The excise duty for both nicotine and non-nicotine liquids and gels is set at 40 sen per millilitre," he said.
Previously, on May 13, Health Minister Datuk Seri Dr Dzulkefly Ahmad said his ministry has set up a special committee to address electronic cigarette misuse, especially among school students, including looking at the possibility of a full ban.
On August 10, Dr Dzulkefly said the Health Ministry will present the committee’s recommendations to the Cabinet once the study is complete, adding that ban is now a matter of "when", not "if".
