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KUALA LUMPUR – Tax on vape products may be implemented after the Health Ministry (MoH) has examined the legal issues related to vaping substances, said Deputy Finance Minister Steven Sim.
“MoH is currently looking into the legal framework for taxation and there may be an announcement in the budget (Budget 2023).
“If the legislation is approved, I invite support from the other side (opposition). Vaping products could be taxed,” he said during the question-and-answer session in the Dewan Rakyat today.
He was replying to a supplementary question from Datuk Wan Saifulruddin Wan Jan (Tasek Gelugor-PN) who wanted to know whether the government plans to impose tax on vape products to increase national revenue.
To a question from Wan Saifulruddin on the estimated loss of tax revenue due to smuggling of tobacco and alcoholic products, Sim said based on calculations, losses were estimated at RM353 million in 2021 and RM364 million (2022).
“However, according to industry estimates and through the reports submitted to the government, the amount is much higher and likely to reach up to RM5 billion a year,” he added.
He said the government would continue to increase efforts to stop illicit cigarette and liquor smuggling to prevent loss of revenue.
Sim added various control and enforcement methods have been implemented to deal with the issue, including limiting cigarette trans-shipment activities to certain ports only, allowing only ISO-standard containers for transport, and banning the use of small and barter-trade boats. – Bernama, February 22, 2023