The Malaysian government has postponed imposition of a new tax on nicotine e-liquid after complaints from consumers and industry over the steep proposed rates.
The plan also would have tripled the existing tax on zero-nicotine e-liquid. The vape taxes were supposed to go into effect Jan. 1.
The postponement was announced earlier this week by the Royal Malaysian Customs Department. No reason was given for the delay, according to The Edge Markets.
Finance Minister Tengku Zafrul Aziz announced Oct. 29 that the government’s 2022 budget included new taxes on vaping products that contain nicotine—currently illegal in consumer products sold in Malaysia. A few days earlier, Health Minister Khairy Jamaluddin had informed the World Health Organization that the country would legalize and regulate vaping products to prevent youth access.
But details of the new tax proved problematic. The planned tax rate was 1.20 Malaysian ringgits (RM) per milliliter—about $0.29/mL. The current RM 0.40 tax on zero-nicotine vape juice would have tripled in the new plan.
Jim McDonald – Vaping360 – 2022-01-06.
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