Raise duty on cigarettes to boost revenue, says Galen Centre
Its chief executive, Azrul Mohd Khalib, said raising the excise tax to the equivalent of 61 per cent of the retail price would generate an additional tax revenue of RM771.8 million.
He said increasing the duty to meet World Health Organisation recommendations of 75 per cent would raise more than RM1 billion in revenue, potentially bringing the total collection from tobacco excise duties to more than RM5 billion.
"The upcoming 2026 Budget should include an increase in excise duties on cigarettes and other tobacco products.
"For every RM 1 collected from tobacco excise duties, RM4 is spent on treating smoking-related diseases. We do not yet know how much will be spent on treating vape-related diseases," he said in a statement today.
Azrul also called for the enforcement of the open display ban on cigarettes, vapes and e-cigarettes, which is stipulated under the Control of Smoking Products for Public Health Act 2024.
He said Malaysia must be firm on the threat posed by nicotine vape and e-cigarettes, which were rapidly replacing cigarette smoking among young people and teenagers.
"Despite a ban on open retail display of cigarettes, vape and e-cigarettes embedded in the regulations for the Control of Smoking Products for Public Health Act 2024, it has yet to be enforced.
"It was supposed to be in effect from 1 April. Unfortunately, the government delayed its enforcement to October.
"The effect of this delay can be seen in the continued open retail sales of these products as if the regulations don't exist," he said.
Azrul said evidence from studies showed that the widespread presence of cigarette displays at the point of sale increased the likelihood that youths would start smoking and stimulated impulse purchasing among existing smokers.
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