The Malaysian Vaping Coalition (MVCC) said the existing high tax rate on e-cigarettes should be reviewed and differentiated from the tax on tobacco cigarettes.

The local government recently announced a 200% e-cigarette tax increase at RM1.20 (1.5RMB) per milliliter for nicotine and non-nicotine e-liquids. Most industry players, especially manufacturers, feel the tax is too high and will hit them hard. This in turn has a negative impact on consumers as prices will have to rise.

“Manufacturers have no choice but to increase the price of their products as the tax levied is equivalent to the current retail price of e-cigarette products. For example, a 30ml bottle of e-liquid will be taxed 36 ringgits (54.3RMB). MVCC At this rate, the estimated retail price of vape e-liquids will be double the current price per 30ml bottle, explained Ashraf Rozali, head of information.”

He added that while the industry supports sound vaping regulations, those regulations should distinguish them from tobacco products. Furthermore, he added, industry stakeholders including manufacturers, retailers and end users must speak up and be involved in the process.

“It’s time for industry members, including manufacturers and consumers, to express their support and participate in our efforts to advocate for the vaping industry, especially in initiatives to support taxation and regulation. We know that many are hesitant to speak out. Their support for the industry, but we have to acknowledge the impact of this industry, which is made up of thousands of entrepreneurs and generates billions of ringgit every year. Now is the time for us to step up and not hide behind the scenes.” Zali said.

"Malaysian Insights and Views on Vape" report

Figures for 2021 show that 80% of Malaysians are in favour of having the local vaping industry regulated by the authorities. Earlier this year, the Malaysian Vaping Coalition (MVCC) called on the Malaysian government to put in place proper regulations for nicotine-containing e-liquids. Among other things, the move will have a positive impact on the local economy by creating more jobs and attracting foreign direct investment (FDI), he said.

“The findings revealed that there are more than 3,300 businesses directly related to the vaping industry, employing more than 15,000 people,” MVCC said when releasing its report on the vaping industry in Malaysia.

MVCC president Syed Azaudin Syed Ahmad said the report results showed that the industry is a viable and growing industry in Malaysia and has fostered the growth of local entrepreneurs. “Furthermore, the Malaysian e-cigarette industry currently has a mature ecosystem of manufacturers, importers and retailers, as well as a growing distribution and logistics network,” he said.

The "Malaysian Insights and Perspectives on Vaping" report highlights public perceptions. The survey, commissioned by the Malaysian Vaping Industry Advocacy Group (MVIA), showed that 76% of respondents agreed that vaping regulations would benefit the local economy.

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