Prime Minister Datuk Seri Anwar Ibrahim has indicated his openness to revisiting Malaysia's tobacco tax policy, aligning with growing public sentiment that leans toward tougher anti-smoking measures. During a recent press briefing held after the Finance Ministry’s Budget Engagement Session in Putrajaya, he conveyed his agreement in principle with calls for higher tobacco duties.
Without explicitly confirming any immediate policy change, Anwar’s remarks suggested that his personal stance as a non-smoker and long-time supporter of anti-smoking efforts informs his receptiveness to such proposals. His administration has already introduced a 5 per cent excise duty on chewing tobacco in Budget 2024, yet cigarette taxes—unchanged since 2015—remained off the revision table.
The last major tobacco tax adjustment occurred in 2015, when excise duties were raised by 42.8 per cent. This increase coincided with the rollout of the Goods and Services Tax (GST), which drove the per-stick cigarette tax from 28 sen in 2014 to 40 sen a year later. Since then, the issue has been largely dormant in fiscal planning, prompting renewed appeals from public health advocates for government action.
Fueling this discussion is a Merdeka Center survey from May 2025, which highlighted that a majority of Malaysians are in favor of increased cigarette taxes—provided they are introduced in a measured and transparent manner. The survey revealed that 66 per cent of respondents supported a tax hike, while 25 per cent expressed opposition, and the remaining nine per cent were undecided.
Public backing appeared to vary across age groups, with the highest approval coming from young adults aged 21 to 30, where more than 84 per cent were in favor of the idea. On the other hand, respondents aged 51 to 60 showed the most resistance.
Although no specific measures have been outlined yet, Anwar’s public alignment with the general direction of this policy push has put tobacco taxation back in the spotlight. Analysts believe this could signal the inclusion of more aggressive health-driven tax reforms in upcoming budgets, especially as the government seeks to balance fiscal needs with long-term public health goals.
As momentum builds and public opinion continues to shift, Malaysia may soon see renewed efforts to curb smoking through strategic taxation, with Anwar’s comments potentially laying the groundwork for future action.
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