Tax cigarettes higher until they smoke no more, say academics

New Straits Times

2 days ago

KUALA LUMPUR: Academics have asked the government to tax cigarettes until they cost at least RM25 per pack to discourage smoking in the country.
Academy of Professors Malaysia Smoking Cessation Task Force medical and health cluster head Professor Dr Mohamad Haniki Nik Mohamed said the move was in line with WHO's MPOWER strategic plan, which proved effective in reducing smoking among youths and the low-income group.
He said the WHO stipulated that tobacco excise tax should account for at least 70 per cent of the retail price, but Malaysia's current rate remained below 60 per cent.
"Taxes must be dynamic, reviewed periodically and adjusted according to inflation and rising income levels so that cigarettes do not become more affordable.
"The 10-year moratorium granted to the tobacco industry since 2015 should not be repeated," he said.
He was commenting on Prime Minister Datuk Seri Anwar Ibrahim's statement regarding the possibility of the government raising tobacco taxes.
Haniki said cigarette prices should be raised to a level where smokers could no longer afford to buy them. Higher prices would also make it harder for teenagers to purchase cigarettes.
Haniki said global experience showed countries that raised cigarette taxes had not only succeeded in lowering their smoking rates, but also increased national revenue, which could be channelled into public health and education programmes.
He added that reducing smoking also brought public health benefits by lowering the incidence of lung cancer, heart disease and chronic obstructive pulmonary disease (COPD).
However, he said raising tobacco taxes must be supported by law enforcement, market monitoring and public education to address challenges, such as the smuggling in of cheap cigarettes and lobbying pressure from the tobacco industry.
"The smuggling of cheap cigarettes must be tackled decisively. The tobacco industry often uses the outdated excuse that tax hikes will increase cigarette smuggling, when global data proves otherwise if enforcement is done properly," he said.
On Thursday, Anwar, who is also the finance minister, confirmed that the government was considering increasing tobacco taxes in the 2026 Budget, which will be tabled in October.
He said the current tax rate, at 58.60 per cent of the retail price, has not been reviewed since the last increase in September 2014, and there is no formal mechanism for price adjustments.
It is also part of efforts to expand taxes on items that adversely affects health, which include sugar, electronic cigarettes and alcohol, as announced during the tabling of the 13th Malaysia Plan last week.