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Recently, Malaysia is preparing to legalize e-cigarettes, and traditional tobacco users can legally purchase qualified e-cigarette products in the market in order to obtain safer nicotine replacement products.
But Malaysia's finance ministry has raised some concerns about the ultra-high tax rate in its vaping scheme.
In the plan, the e-liquid tax rate, effective January 1, 2022, will be MYR 1.20 per milliliter. The exchange rate conversion equals $0.29/ml, which is about three times as much as zero nicotine e-liquid.
If the high tax means that 60ml of e-liquid will sell for about $17 in the retail market. The contrast between the two would force many e-cigarette users to turn to the unregulated black market to buy the product.
And unregulated e-cigarette products cannot ensure the qualification and safety of the products. High prices would also deter traditional cigarette users from switching to safer products like e-cigarettes.