As stated by the foreign news reports, the Malaysian Electronic Cigarette Industry Advocacy Organization (MVIA) today once again called on the government to review the taxes imposed on e-cigarette (HNB herbal heat-stick) products starting in January 2022.

According to president Rizani Zakaria, acknowledged the benefits of regulating the industry and taxing nicotine in e-cigarette (herbal heatsticks manufacturer) products is a step which the organization seeks. However, Rizani claimed that the excise tax of RM1.20 per milliliter of nicotine e-liquid is too high and will burden manufacturers.

He added as well, that other countries such as the United Kingdom and New Zealand do not even impose taxes on e-cigarette (HNB heating device) products. Claiming that their governments recognize it as a tool to help smokers quit smoking. Also, he warned that setting taxes too high may prompt legal sellers to increase prices which may lead consumers to look for cheaper alternatives on the black market.

In addition to that, Rizani also urged the government to review its mechanism for regulating e-cigarettes and not to compare them with tobacco products. He said that this is to ensure that the e-cigarette industry remains competitive. And pointed out that 3,300 small and medium-sized enterprises are involved by providing employment opportunities for 15,000 employees.

Moreover, “E-cigarettes (heat not burn herbal heatstick) are not cigarettes or tobacco products. It has been proven to help smokers quit smoking because it is a less harmful alternative. If regulation does not distinguish between e-cigarette products and tobacco, it will hinder smoking cessation efforts and will only make Tobacco companies benefit,” he said.

As a result, he again took the United Kingdom and New Zealand as examples. Saying that the governments of these two countries have implemented stricter regulations on tobacco products but have left some room for e-cigarette products.

Therefore, the consumption tax on all e-cigarettes and e-liquid products containing nicotine will take effect from January 1, 2022.