The Confederation of Malaysian Brewers Berhad (“CMBB”) have reacted to the government’s announcement for Budget 2026 in which a further 10% has been imposed on the excise duty of alcohol.
This raise will result in a new rate of RM192.50 per 100% volume per litre and a price gap between legitimate and illicit beer.
Furthermore, raising beer excise duties risks reducing government revenue and harming both the industry and consumers. Illicit beer already makes up about 25% of local consumption, causing RM1.2 billion in tax losses each year. Higher rates could worsen this problem.
The beer industry has pledged continued support for the Royal Malaysian Customs Department and the Government’s Multi-Agency Task Force in efforts to stop illicit beer and protect revenue. CMBB said a balanced approach, combining enforcement, awareness, and collaboration with authorities, is key to tackling the problem.
