The Malaysian Vape Chamber of Commerce (MVCC) yesterday shared its disagreement with the proposal of JTI, a tobacco company, in recommending that the government impose a high tax rate for vape, equivalent to tobacco.
Ashraf Rozali, Head of Information, Malaysian Vape Chamber of Commerce (MVCC) says the proposal would only benefit tobacco companies and hamper the vape industry’s efforts to encourage smokers to switch to less harmful alternatives.
“Imposing high taxes and equating vape with cigarettes is not a wise move as it will result in the high price of vape products, making them much more expensive than traditional cigarettes. If the tax is raised for vape products, it will prevent smokers from switching to vape products that have been proven to be less harmful than traditional cigarettes. Their proposal is only for their own benefit.”
Ashraf also says that over the years, the tobacco industry has shown that high taxes will lead to the issue of smuggling to avoid taxes.
Differentiated Regulations
“The vape industry has long championed the need for regulations to be introduced especially for the use of nicotine e-liquids as well as to ensure quality and safety standards for vape products. These regulations are necessary to allow the vape industry to grow and allow smokers to switch to vape.”
“We hope that in the tabling of the 2022 Budget next month, the Government will introduce rules and taxation frameworks for the vape industry that are different from the tobacco industry. The vape industry is ready to support the government and requests that the industry is involved in any consultation sessions on the regulations for vape,” says Ashraf.
