KUCHING: A health think tank has called on the government to raise cigarette and tobacco excise duties to at least 77 sen per stick in the 2026 Federal Budget.
Galen Centre for Health and Social Policy founder and chief executive officer (CEO) Azrul Mohd Khalib said this would be equivalent to 61 per cent excise tax of the retail price and would generate an additional tax revenue of RM771.8 million
“The upcoming Budget 2026 should include an increase in excise duties on cigarettes and other tobacco products.
“Astonishingly and contrary to global trends, these taxes have remained unchanged since 2015,” he said in a statement on Monday (Aug 11).
He added that Malaysia spends an estimated RM16 billion annually treating smoking-related illnesses such as cardiovascular disease and lung cancer, noting that for every RM1 collected in tobacco excise duties, RM4 is spent on treatment.
“We do not yet know how much will be spent on treating vape related diseases. The current rate is currently at 42.8 per cent.
“Increasing the duties to meet World Health Organisation recommendations at 75 per cent, would raise at least RM 1 billion more in revenue, potentially bringing it to more than RM 5 billion collected from tobacco excise duties,” he added.
Azrul also warned of the rising threat posed by nicotine vape and e-cigarettes, which are rapidly replacing cigarette smoking among Malaysian youths.
”The National Health and Morbidity Survey (NHMS) Adolescent Health Survey 2022 revealed that there has been a decline in the reported rate of smoking among teenagers and adolescents.
“However, the same report indicated a significant increase in the prevalence of e-cigarette and vape use among this group of people.
“The rates of adolescents vaping between the ages of 11 to 18 in Malaysia now exceeds those reported in several countries, including the United States,” he said.
He added that despite a ban on open retail display of cigarettes, vape and e-cigarettes embedded in the regulations for the Control of Smoking Products for Public Health Act 2024, it has yet to be enforced.
“The measure, originally set for April 1, was postponed to October, allowing continued open sales as if the regulations don’t exist.
”Smokers themselves supported the imposition of the regulation,” he added.
He also said that evidence from studies have shown that widespread presence of cigarette displays at the point of sale increases the likelihood that youth will start smoking, and stimulate impulse purchasing among existing smokers.
“Experience from countries such as Singapore, Saudi Arabia and Australia with the display ban in place has shown that it works to reduce smoking initiation which is common during adolescence,” he said.
