Finance Ministry: Vape liquid manufacturers have until April 30 to register with Customs Dept to facilitate new tax collection
KUALA LUMPUR, April 2 — Vape industry stakeholders have been given until the end of this month to register themselves with the Customs Department following the gazetting of an excise duty for vape liquids with nicotine, the Finance Ministry said today.
The ministry said the early registration from April 1 to April 30 will ensure comprehensive compliance from industry players come tax collection in May.
“This early registration will prevent manufacturers from being compounded on grounds of late registration.
“With the implementation of this excise duty, the government is committed to ensuring all regulations and controlled goods excise duty will further improve to prevent financial leakages,” it said in a statement.
Licensing registration under the Excise Act 1976 can be done online through the MyExcise System at https://myexcise.customs.gov.my/myexcise/
Last week, Putrajaya gazetted an excise duty for vape liquids with nicotine content at 40 sen per millilitre, in its bid to tax liquid or gel products containing nicotine for electronic cigarettes or vape devices.
During the tabling of Budget 2023 on February 24, Prime Minister Datuk Seri Anwar Ibrahim who is also the finance minister announced that the government will impose an excise duty on liquid or gel products containing nicotine, with half the revenue to be allocated to the Health Ministry.
He said that the liquid or gel products with nicotine — estimated to be worth RM2 billion in potential government revenue — were widely used with electronic cigarettes and vaping, despite this being technically illegal.
The previous government announced plans under Budget 2022 to expand tax collection to vape liquids containing nicotine by imposing excise taxes at RM1.20 per millilitre, but the enforcement was postponed.
In order for the government to tax vape liquids with nicotine, the Health Ministry has also taken steps to exempt the aforementioned controlled substance from the Poisons Act, where two associations representing healthcare professionals in Malaysia voiced their opposition to the government’s move to exempt nicotine before the tabling of the Tobacco Control Bill.