Budget 2021: E-Cigarettes And Vape Liquids To Be Taxed; No More Tax-Free Cigarettes In Duty-Free Islands

From 2021, the government will begin imposing a 10% excise duty on all cigarette products, both electronic and non-electronic. In addition, vape liquids will also be imposed an excise duty of 40 sen per milliliter.

On top of that, Finance Minister Tengku Zafrul Abdul Aziz also revealed that cigarettes and tobacco products sold in duty-free islands (Langkawi, Labuan, Tioman, and Pangkor) will also be full-priced. This means the only spots to purchase them duty-free will be at airports, where there is a purchase limit per customer.

This excise duty was announced during the tabling of Budget 2021. The move was a way to increase the country’s income and sustain the expansionary Budget, which is the largest in Malaysia’s history.

Stay up to date with our Budget 2021 coverage here.

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