Govt mulls raising vape tax from 40 sen to RM4 per ml

PARLIAMENT | The Health Ministry has proposed raising the tax on vape liquid from 40 sen to RM4 per millilitre, said Deputy Health Minister Lukanisman Awang Sauni.

Addressing the Dewan Rakyat today, the Sibuti MP said the Health Ministry has proposed the tax increase to the Finance Ministry as part of measures to align taxes imposed on smoking products.

“One cigarette equals 10 puffs and one pack (of cigarettes) equals 200 puffs, while 1ml of vape liquid generates 100 puffs.

“The proposed tax rate for vape liquid is to be increased from 40 sen to RM4 per ml, as suggested by the Health Ministry for the Finance Ministry’s approval,” Lukanisman (above) said in response to a query from Wan Saiful Wan Jan (PN-Tasek Gelugor).

The opposition lawmaker had urged the Health Ministry to provide its assurance that under the upcoming Budget 2026, the tax rate on nicotine vape liquids will be equalised with the tax on cigarettes.

“In terms of content, one pack of cigarettes is roughly equivalent to 2ml (of nicotine liquid), but the tax on 1ml of nicotine (liquid) is only 40 sen - about 10 percent of the cigarette tax.

“That’s a big gap, which drives people toward vaping,” Wan Saiful argued, noting that, unlike cigarettes, there is also no price floor imposed on vape liquids.

Wan Saiful had previously acknowledged that while the Health Ministry is examining proposals to completely ban vape sales, the imposition of total prohibition measures often leads to difficult-to-control black markets without effective enforcement.

He had also cautioned that excessive delays hindering vape regulations under the pretext of legal concerns would only worsen public health risks.

Vape tax vs Evali treatment

In August, the Health Ministry reportedly said excise duties on smoking products added RM15.30 billion to government revenue between 2021 and July of this year.

The total tax revenue collected from devices, nicotine, and non-nicotine liquids or gels used in electronic cigarettes and vapes within the period amounted to RM288.45 million, while the total tax revenue from cigarettes over the same period amounted to RM15.02 billion.

Lukanisman also informed Parliament today that in terms of tax revenue, vape tax collection in 2024 amounted to RM111 million.

However, he said the estimated cost of treating vape-related illnesses, including Evali (e-cigarette or vaping product use-associated lung injury), reached RM223 million in 2024 and is expected to continue rising.

“This shows that the health costs far exceed the fiscal benefits,” he said in response to a separate question from Yuneswaran Ramaraj (Harapan-Segamat).

The deputy health minister also reiterated that the ministry is moving toward a complete ban on electronic cigarettes or vapes, with a proposal on the matter expected to be presented to the cabinet this year.

In July, Health Minister Dzulkefly Ahmad told the lower house that the move follows authorities' findings that the smoking products are being abused for the consumption of illegal drugs.

Reporting by Qistina Nadia Dzulqarnain, Alyaa Alhadjri, Haspaizi Zain

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