CAP wants SST imposed on cigarettes in 2026 Budget
CAP senior education officer and anti-smoking activist N.V. Subbarow said it was high time for this as cigarettes have been exempt from sales taxes for eight years.
"The last SST was imposed in 2018 on tobacco products. After that, there was no tax on cigarettes for eight years, which is a big disappointment.
"Smokers spend about RM500 every month. Even healthy food does not cost that much.
"As such, we expect a mandatory sales tax on cigarettes in the 2026 Budget if the government wants to reduce the current number of five million smokers," he told the New Straits Times.
Earlier today, Prime Minister Datuk Seri Anwar Ibrahim, who is also the finance minister, said the government was considering a proposal to raise the tobacco tax to between 60 per cent and 70 per cent of retail prices.
He said the proposal was consistent with the government's health reforms.
Last week, Anwar had said the government would expand its pro-health tax framework to include tobacco, vape products, and alcohol, beyond just sugary drinks, under the 13th Malaysia Plan (13MP).
Subbarow said evidence from countries across all income levels showed that raising cigarette prices was very effective in reducing demand.
"Higher taxes encourage some smokers to quit and deter others from starting. They also reduce the number of ex-smokers who return to cigarettes and reduce consumption among continuing smokers.
"Given that this fact has been confirmed in other countries, CAP hopes our prime minister will announce a sales tax on cigarettes," he added.
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