Clear regulations on vape industry needed
Electronic cigarette (e-cigarette) and vape enterprises are seeking a holistic regulation to further drive the growth of the industry following the introduction of a 10% excise duty on cigarette devices starting next year.
KPMG Malaysia head of tax Tai Lai Kok told TMR that taxing e-cigarettes could streamline the industry, but a rise in retail prices could result in illegal trading as observed in the tobacco industry at present.
He further said the new excise duty also poses an immediate challenge of product classification according to the relevant legislation and orders, including businesses along the supply chain who are subjected to the duty.
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