Malaysian Vaping Manufacturers Must Register by April 30

According to foreign reports today, after removing nicotine electronic liquids or gels from the 1952 Poison Act to allow taxation on electronic cigarettes and electronic cigarette products in Malaysia, local manufacturers producing nicotine-containing electronic e-liquids must register their manufacturing affairs with customs by April 30.

"Registering in advance within this deadline may prevent manufacturers from being fined for delayed registration," The Edge Markets reported today, citing a statement from the Ministry of Finance on April 2, which stated that this early registration will ensure full compliance in the industry and smooth taxation before May 2023.

This is the latest move following the imposition of a consumption tax of 40 cents (0.004 USD) per milliliter on nicotine electronic liquids or gels.

Minister of Finance Datuk Seri Anwar Ibrahim announced in February when re-submitting the 2023 budget that the government plans to impose a consumption tax on liquid or gel products containing nicotine.

The previous government led by Datuk Seri Ismail Sabri Yaakob also proposed to expand the taxation on nicotine-containing electronic cigarettes and electronic cigarette gels or liquid products in the 2022 budget, imposing a tax of 1.20 ringgit per milliliter. However, the plan was postponed as nicotine electronic cigarette oil was still classified as a Class C poison under the Poison Act.

The Ministry of Finance stated that the new consumption tax will enable the government to tax an estimated electronic cigarette industry worth over 2 billion ringgit (454 million USD), while also helping to curb the use of electronic cigarettes.

According to media reports today, this will also help improve customs rules and controls over consumption tax goods to avoid loss of national revenue.