What happened to promised 50pct vape tax allocation for health, MP asks

PARLIAMENT | An opposition lawmaker urged the government to explain its pledge to channel half of the excise duties collected from nicotine vape products to the Health Ministry, amid fresh questions over plans to exempt liquid nicotine from the Poisons List.

Dr Ahmad Yunus Hairi (PN-Kuala Langat) raised the issue during the committee-stage debate on Budget 2027 in the Dewan Rakyat today, citing RM354.51 million in excise duties collected from vape products between 2023 and mid-2026.

He questioned how the Finance Ministry had implemented its commitment under Budget 2023 to allocate 50 percent of the revenue towards improving public healthcare services, including treating smoking-related illnesses and prevention programmes.

“I would like an explanation of the method or mechanism for channelling the allocation, as planned under the policy to allocate 50 percent of the tax revenue to the Health Ministry for the treatment of diseases,” Yunus (above) said.

The government had imposed an excise duty of 40 sen per millilitre on nicotine-containing vape liquids in 2023, following a controversial decision to remove liquid and gel nicotine from the Poisons List under the Poisons Act 1952.

In July 2024, Malaysiakini reported that the Galen Centre for Health and Social Policy had questioned the government’s failure to earmark vape tax revenue for healthcare initiatives, despite the commitment made in Budget 2023.

The centre at the time said the revenue had instead been channelled into the Federal Consolidated Fund.

Treatment costs outweigh revenue

Yunus also questioned the economic justification for maintaining the excise duties today, citing Health Ministry estimates that the burden of treating vape-related illnesses could reach RM369 million annually.

According to a written parliamentary reply by Health Minister Dzulkefly Ahmad on July 28, the government collected RM80.32 million in vape excise duties in 2023, RM111.14 million in 2024 and RM118.93 million in 2025.

Another RM44.11 million was collected between Jan 1 and June 11 this year, bringing the total to RM354.51 million, but the figures also cover excise duties on electronic cigarettes and vape products.

The RM369 million figure is a projected annual healthcare and economic burden associated with vape-related illnesses by 2030.

Yunus argued that the government’s annual tax collections were substantially lower than the estimated healthcare costs.

He also pressed the Finance Ministry to explain whether the government would recommend a nationwide vape ban, given the financial and public health implications.

“Since the Health Ministry reported that treatment costs are higher than the tax revenue collected, will the Finance Ministry propose that the Health Ministry ban vape in our country?” he asked.

Fresh nicotine exemption questioned

The PAS MP further questioned the legal status of excise duties collected following a High Court ruling in May that declared the government’s 2023 decision to remove liquid and gel nicotine from the Poisons List unlawful.

The court found that the exemption was irrational and implemented without proper consultation with the Poisons Board.

The government initially appealed the ruling but withdrew its appeal on Aug 18.

Yunus raised the issue following reports yesterday that Dzulkefly had secured the Poisons Board’s support for a fresh proposal to exempt liquid nicotine from the Poisons List.

The reported development has prompted renewed criticism from health groups, which have questioned whether the government intends to proceed with its previously announced plans to ban vape products.

Yunus asked whether the latest decision was intended to address previous governance failures and justify the excise duties collected since 2023.

“Is the latest Poisons Board decision intended to correct the previous governance failures and justify the collection of excise duties all this while?” he asked.

He also questioned whether taxpayers could challenge the earlier collections and seek refunds following the May High Court ruling.

“What is the status of excise duty collections from the beginning until the latest Poisons Board decision? Will those collections be refunded?” he asked.

Yunus then reiterated his call for the government to ban vape products entirely, citing their harmful effects, particularly on young people.

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