The Malaysia Retail Electronic Cigarette Association said it sees the announcement on vape taxation for nicotine vape products as a positive move as it makes way for regulations to regulate the vape industry.
Datuk Adzwan Ab Manas, President of MRECA said, “Once vape is taxed and regulated, then it can be officially pushed as a less harmful product compared to tobacco. With this, cigarette smokers would be encouraged to slowly transition to
vape which has been proven to be a less harmful alternative.” “Given the details on the taxation have not been announced, MRECA urged the Government to consider an appropriate tax rate for vape products. The tax rate must not be too high and takes into consideration the dynamics of the market. A high tax rate will cause prices of products to increase significantly and push consumers to seek cheap unregulated products.”
“At the same time, regulations must be introduced quickly to complement the taxation framework. This can be done through amendments to existing laws to include vape products and we urge the Government to engage industry players in
discussions relating to the regulations.”
“With the right regulations in place, MRECA said it is of the opinion that a Generational Endgame (GEG) policy is not necessary as it will impact local industry players. It also believes that more studies and discussions are needed to assess the impact of GEG.
