Following the recent announcement of a delay in enacting the new bill, the Retail and Trade Brand Advocacy Branch of Malaysia (RTBA Malaysia) said Malaysia’s Ministry of Health (MoH) should immediately tax and regulate nicotine vaping products.

RTBA Malaysia managing director Datuk Fazli Norddin said the delay meant that taxes related to nicotine vaping products could not be implemented until the bill was completed in the legislative process later this year.

"While we appreciate and welcome the efforts of the Ministry of Health to take the time to develop the right regulations and policies for vaping products, the process is taking too long."

In a statement today, he said: "We must not further delay the move to allow the industry to operate legally and contribute much-needed revenue to the government treasury.

Fazli reiterated that the Ministry of Health now needs to take steps to regulate the vaping industry.

This can be done quickly by issuing directives or regulations on the product composition of nicotine vaping products, particularly at allowable nicotine levels, and amending the Poisons Act 1952 to tax nicotine vaping liquids.

"If the delay is because the bill has not been finalized, the Ministry of Health should act swiftly to amend the Poisons Act 1952 to allow the sale of nicotine vaping products and to issue directives or regulations on product ingredients to all industry participants in the product. "

“This is to ensure that the industry immediately adheres to safety and quality standards, especially with regard to nicotine levels and e-cigarette liquid composition, while also paying taxes on the product,” he said.

With the delay now, Fazli said not only would consumers continue to buy unregulated products, the government would also lose millions of ringgit in tax, which is much-needed revenue.

"Therefore, the Ministry of Health can no longer waste time on this matter," he said.

RTBA is an NGO that advocates for effective regulatory, financial and tax policy affecting retailers and brands.

In November last year, the Finance Minister announced an excise tax of RM1.20 per milliliter on nicotine gel or liquid products used in e-cigarettes and e-cigarettes when he presented Budget 2022.

However, the implementation of excise duty has been postponed indefinitely as nicotine e-liquid is currently classified as a Group C poison under the Poisons Act 1952.

The Malaysian e-cigarette industry is currently worth RM2.27 billion.

In addition to making a significant contribution to government revenue in the form of taxation, an industry of 3,300 small and medium enterprises (SMEs) provides employment to more than 15,000 workers in Malaysia.

The delay also means it will also hinder the growth of the industry in Malaysia and leave thousands of workers uncertain about their futures.

“The Ministry of Health needs to look at this objectively and consider the various implications of the delay. Thousands of workers are uncertain about their futures and the industry is still running without clear direction from the government. "

“Furthermore, consumers are getting unregulated products and governments are being deprived of much-needed tax revenue. All of this can be addressed with simple solutions,” Fazli said.

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