PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has expressed support for raising tobacco taxes, following calls from economists to end the decade-long moratorium on excise duty hikes.
Speaking after the Budget 2026 consultation session here today, Anwar was asked whether the government would consider reviewing the current tobacco tax rate — which stands at over 40% — with some experts suggesting an increase to between 60% and 70%.
“I agree in principle. I don’t smoke, and I’ve always supported anti-smoking campaigns,” he said.
The last major increase in tobacco excise duty was in 2015, when the government raised it by 42.8%. Tobacco taxes have remained unchanged since then.
Last week, Anwar also announced that under the 13th Malaysia Plan, the government will expand its “pro-health” taxation policy to include not just sugary products, but also tobacco, vape products, and alcohol.
He said the move aims not only to boost government revenue but more importantly, to encourage healthier lifestyles and curb the rising prevalence of non-communicable diseases (NCDs) in the country.