Health group slams 2 sen tobacco tax hike as insufficient

PETALING JAYA: A leading women’s health advocacy organisation has criticised the government’s tobacco excise duty increase announced in Budget 2026 as inadequate, calling for bolder action to protect public health.

The Malaysian Women’s Action for Tobacco Control and Health (MyWATCH) expressed disappointment that cigarette taxes will rise by only 2 sen per stick — from 40 sen to 42 sen — effective November 1, 2025, despite tobacco excise duties remaining frozen since 2015.

MyWATCH President Roslizawati Md Ali acknowledged the increase as long overdue but said the minimal adjustment falls far short of what’s needed to reduce smoking rates and deter youth uptake.

“After nearly a decade of stagnation, this token increase is far below what’s needed to save lives. Tobacco tax policy should protect health, not protect industry profits,” she stated.

The organisation had previously submitted policy recommendations urging the government to raise tobacco excise to at least 75 sen per stick — a level aligned with World Health Organisation (WHO) guidelines and proven effective in reducing tobacco demand.

MyWATCH argued that the 2 sen increase will have negligible impact on smoking rates, particularly given inflation and rising healthcare costs over the past decade.

“Budget 2026 could have been a turning point for tobacco and vape control — instead, it is a missed opportunity. Malaysia must act boldly to protect our youth and future generations,” Roslizawati said.

She urged the government to implement an additional increase from 42 sen to 75 sen per stick through extra-budgetary measures.

MyWATCH expressed serious concern over the complete absence of vape and e-cigarette taxation in Budget 2026, calling it a major public health failure.

The organisation highlighted the lack of fiscal or regulatory controls over vape products, including those containing nicotine, despite rising youth addiction rates and aggressive online marketing targeting young people.

MyWATCH is calling for immediate action including:

A total ban on all vape products, including prohibition of youth-targeted flavourings and packaging.

The reinstatement of nicotine-containing vape products under the Poisons Act.

Further increases in tobacco taxation beyond the announced levels.

The health advocacy group also urged the government to earmark revenues from tobacco and alcohol taxes specifically for prevention and cessation programmes, rather than solely for treatment services.

“Prevention is wiser to ease the burden on health and the socio-economies,” the statement noted, emphasising that preventive measures offer better long-term value than reactive healthcare spending.

MyWATCH maintains that comprehensive tobacco and vape control measures are essential to safeguard Malaysia’s youth and future generations from nicotine addiction and related health consequences.

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