“Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz, in his maiden Budget speech on November 6, proposed imposing excise duty on electronic, non-electronic cigarette devices and vape liquids beginning January 2021. He said the government will impose excise duty at a rate of 10 per cent on all types of electronic and non-electronic cigarette devices, as well as 40 sen per ml (millimetre) when it comes to the sale of vape liquids. All nicotine products fall under the purview of the Poisons Act 1952, and no licence has been issued by the health ministry for vaping products in the country. Mohd Hiekal bin Rosli, owner of Molek Vape Store on Jalan Ipoh, said “An Act should be put in place first and they should streamline the issuing of licences for vapes and all its related products. Right now, the health ministry doesn’t even issue licenses. How can you impose tax for something that people cannot get a licence to sell in the first place?” he questioned. Hiekal added that while the 10 per cent excise duty on e-cigarettes and vaping devices is fair, the 40 sen per ml on vape liquids is a bit much. “Forty sen per ml is actually quite high. Most vape juices I sell come either in 10ml, 30ml or 60ml boxes; imagine one 60ml bottle costs an average RM40, and at 40 sen per ml, that brings the total price to an additional RM24 on top of the price of the juice itself.””
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Vape shop operators: A tax on our products amid Covid-19 pandemic will kill business