AS the government considers raising tobacco taxes in Budget 2026, the Consumer Choice Centre (CCC) urges policymakers to adopt a more effective and science-based approach.
Risk-based taxation, where nicotine products are taxed according to their level of health risk, offers a practical solution that supports public health while avoiding unintended consequences, such as the growth of black market or barriers to harm reduction.
While reducing non-communicable diseases is commendable, a uniform tax on all tobacco and nicotine products may do more harm than good.
We support the government’s health goals but applying the same tax to cigarettes, vaping products and other reduced-risk alternatives is counterproductive. Taxation should reflect relative harm so smokers are encouraged to switch to safer products.
Malaysia already faces a significant challenge from the illicit tobacco trade. High excise rates on cigarettes have long pushed many consumers – particularly those in lower income groups – towards cheaper, unregulated products.
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