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Excise Duty on Electronic Cigarettes - Guide and FAQ

As announced in the 2021 Budget on 6 November 2020, the Government has proposed that Excise Duty shall be levied on:-

  1. All types of electronic and non-electronic cigarette devices including vape (10% ad valorem)
  2. Liquid or gel used for electronic cigarettes including vape (RM0.40 per milliliter)

The above is proposed to be effective 1 January 2021 but the legislation has not been released nor passed as at to date.

Nevertheless, the Royal Malaysian Customs Department ("RMCD") has on 8 December 2020, issued a Guide and FAQ on the imposition of Excise Duty on electronic and non-electronic cigarette devices including vape as well as liquid or gel not containing nicotine used for electronic cigarette including vape.

The Guide and FAQ are available in Malay language only.

Please refer to our Tax Whiz for a summary of the key points which can be accessed via the above link.

Should you have any questions or require further clarification, please do not hesitate to email or contact any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization. 

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Ng Sue Lynn
Executive Director
Indirect Tax Practice

Dato' Tan Sim Kiat
Advisor
Indirect Tax Practice

Huang Shi Yang
Director
Indirect Tax Practice