In-depth study on vaping tax structure is needed: Research Company | Daily Express Online

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In-depth vaping tax structure study needed: research company

Posted on: Sunday, November 29, 2020

By: Bernama

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KUALA LUMPUR: The proposed tax value for the vape industry falls far short of what the government has imposed on the tobacco industry, MQ Consultant said. Despite the high revenue potential of the vape market, the industry is taxed much less than the tobacco industry, he said. “Taxation is one of the first important steps in regulating the growing vaping economy, with Malaysia estimated to be the second largest vaping market in the world after the United States, and with different dynamics compared to the economics of cigarettes, an in-depth study of the tax structure is needed.

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“We cannot use a comprehensive method to cover everything,” he said in a statement. MQ Consultant is a local research and technology company engaged in an in-depth study of the economy and the vaping industry in Malaysia. The taxation of the vaping industry, to follow in the footsteps of the tobacco industry, was among the many highlights contained in the 2021 budget approved last Thursday in Parliament. As announced in the 2021 budget, the government proposed to impose an ad valorem excise of 10% on all electronic and non-electronic smoking devices, as well as an excise duty of 40 sen per milliliter for electronic cigarettes and vaping liquids with and without nicotine, from January 1, 2021.

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“However, the vaping industry is taxed much less than the tobacco industry despite its high income potential. Today there are an increasing number of people around the world who smoke, opting for vaping,” said MQ Consultant, adding that the majority of other countries have imposed a much higher tax than Malaysia. He also said that with the help of data and research actively compiled locally and internationally, the government could leverage the use of vaping as a tool to help the public transform into a possible smoke-free society. “This effort is not an experimental idea as it was adopted by the New Zealand government as a tool to achieve its goal of becoming a smoke-free nation by 2025.” With tax regulations in place, Malaysia can finally design a winning solution. win a situation which will not only contribute to the country’s economy, but also benefit the government’s efforts to improve Malaysia’s social and health situation in the long term, ”he added. Meanwhile, an independent investigation estimated that there are three million electronic cigarette users in Malaysia at present.


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