Higher Excise Duties On Cigarettes, Alcoholic Beverages Starting Nov 1

KUALA LUMPUR, Oct 10 (Bernama) -- The excise duty rates on tobacco products and alcoholic beverages will be increased starting Nov 1, with the additional revenue channelled to the Health Ministry (MOH), said Prime Minister Datuk Seri Anwar Ibrahim.

When tabling Budget 2026 today, he said the excise duty on cigarettes will increase by two sen per stick; cigars, cheroots and cigarillos by RM40 per kilogramme; while heated tobacco products will see a RM20 increase per kilogramme of tobacco content.

The government will also raise the excise duty on liquor products by 10 per cent.

He said the excise duty on tobacco products was raised to reduce the prevalence of smoking in the country, while the higher duty on liquor products is to reduce access to alcoholic beverages and encourage a healthy lifestyle.

The government has extended the exemption period for import duty and sales tax on nicotine replacement therapy products, expanding it to include nicotine mist and nicotine lozenges until Dec 31, 2027.

“The additional revenue from tobacco and liquor will be allocated to the MOH, among others, for its Lung Health Initiative as well as treatment for diabetes and heart disease.

“Prevention is better than cure. It is proposed that tax relief for vaccination expenses be extended to cover all types of vaccines registered and approved by the MOH,” he said in the Dewan Rakyat.

-- BERNAMA