Cigarette, liquor excise duties up effective Nov 1

BUDGET 2026 | Putrajaya will raise the excise tax rates on tobacco products and alcoholic beverages, effective Nov 1, announced Prime Minister Anwar Ibrahim.

In tabling Budget 2026 in the Dewan Rakyat today, Anwar, who is also the finance minister, said the excise duty rate on cigarettes will be increased by two sen per stick.

The rate has reportedly not been raised since September 2014, when it was increased from 28 sen to 40 sen per stick.

Cigars, cheroots, and cigarillos will have their excise tax rates increased by RM40 per kg, while heated tobacco products will see an increase of RM20 per kg of tobacco content.

“At the same time, the government will extend the exemption period for import duty and sales tax on nicotine replacement therapy products and expand (the scope) to include nicotine mist and nicotine lozenges until Dec 31, 2027,” Anwar added.

He also said that as part of measures to reduce access to alcoholic beverages and encourage a healthier lifestyle, the government has agreed to raise the excise duty rate on liquor products by 10 percent.

The rate of excise duties on alcoholic beverages varies from a composite rate of RM1.10 per litre and 15 percent of the value for certain types of such drinks.

Anwar noted that additional revenue from tobacco and liquor will be allocated to the Health Ministry, which will then implement various programmes, including those on healthy lungs, diabetes, and heart disease treatment.

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