The Malaysian Vape Chamber of Commerce (DPVM) has pushed back against proposals to hike vape taxes up to ten times, saying current rates are reasonable and a massive increase would unfairly burden both consumers and the industry.
DPVM Secretary Ridhwan Rosli warned that a sudden tax spike wouldn’t benefit anyone—not the government, the public, or vape businesses. Instead, he advocates for the Health-Protective Tax and strict enforcement of Act 852 as the best way to regulate the vape sector responsibly and ethically.
Ridhwan said the government could expand the Health-Protective Tax to include vape products without banning them entirely. “A targeted tax approach is far more effective and balanced than a blanket prohibition,” he noted, emphasizing that revenue from such taxes could be channeled into public health programs.
He added that if vape prices soar, many smokers would simply stick to traditional cigarettes. Research from Yale University and Georgia State University supports this, showing that higher vape taxes reduce vaping but increase smoking among young adults aged 18 to 25—a clear example of the substitution effect, where users switch to cheaper or more accessible alternatives, including smuggled products.
Ridhwan stressed the importance of keeping taxes reasonable. If rates rose to RM4 per milliliter, a 15ml bottle could carry RM60 in tax alone, before retail pricing. A more practical ceiling, he suggested, would be RM0.80 per milliliter, taking into account an additional 10 percent tax on devices. He also highlighted the need to consider small-scale Bumiputera vape operators who could be disproportionately affected.
Act 852, he added, provides a strong legal framework to regulate the industry nationwide, but inconsistency across states remains a problem. Seven states currently ban vape sales, creating a patchwork of rules that undermines regulation and public health goals.
Ridhwan emphasized that enforcement must be consistent, with a focus on protecting minors through age verification, advertising bans, and restrictions on public displays. “Vape products should only be accessible to adults who want to quit smoking,” he said.
DPVM is calling on the Ministry of Health, Ministry of Finance, and other relevant agencies to fast-track the Health-Protective Tax while applying Act 852 consistently across the country. “Our goal is a fair, effective, and balanced regulatory system that protects public health while supporting responsible industry growth,” Ridhwan concluded.
