The excise tax rate is too high and the MoH has yet to share details on the permissible maximum nicotine level in vape liquids, says MVIA

by SHAFIQQUL ALIFF & NURUL SUHAIDI / pic by HUSSEIN SHAHARUDDIN

THE local vape industry is urging the government to review the guideline for the taxation of nicotine vape liquid, as the regulations will be enforced on Jan 1, 2022.

The Malaysian Vape Industry Advocacy (MVIA) said the excise tax rate is too high and that the Health Ministry (MoH) has yet to share details on the maximum level of nicotine that will be allowed in vape liquids.

In the Budget 2022 tabling, it was stated that the taxation level for vape liquids was increased by 200% to RM1.2 per millilitre (ml), including nicotine vape liquids.

Its president Rizani Zakaria said the industry has yet to receive any information on the views that have been shared on the high tax rate, and the maximum level of nicotine allowed for vape liquids.

He said the industry has requested for the government to expedite the delivery of information on these matters.

“Manufacturers and producers are still unsure about the tax rate that will be implemented and the maximum levels of nicotine allowed in vape liquids set for sale.

There are only a few days left to 2021 and the industry still does not have the information needed.

“The government should not delay this matter as it will affect the operations of producers and manufacturers in the vape industry if information is not obtained before the implementation takes place,” he said in a statement yesterday.

Rizani added that manufacturers and producers need to make preparations before entering the new year to avoid any disruption to their operations.

He said manufacturers and producers must also ensure that vape liquids with nicotine levels that exceed government guidelines are removed from their stock as all industry players have so far not received any updates from the government.

The industry has suggested for the government to look at countries such as the US and the Philippines where the maximum rate of nicotine is 65mg per ml.

“There are also examples in New Zealand where the maximum rate is 50mg per ml while most European countries are at 20mg per ml.”

Rizani also reaffirmed that the industry will support the government’s efforts and actions in working towards regulating the industry.

“We are ready to comply with any guidelines provided. However, we hope that the government can provide feedback immediately on this matter,” he concluded.