Budget 2026: Excise Duty For Cigarettes Up 2 Sen Per Stick, 10 Pct Rise For Alcohol - PM Anwar

KUALA LUMPUR, Oct 10 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim said excise duties for cigarette and alcohol products will be raised effective Nov 1, 2025 under the Budget 2026.

Anwar, who is also the Finance Minister, said this includes a two sen increase per stick for cigarettes, a RM40 per kilogramme (kg) rise for cigars, cheroots and cigarillos, and an additional RM20 per kg for "heated tobacco" products.

The government has also simultaneously extended import duty and sales tax exemption on nicotine replacement therapy products, and extended it to nicotine mist and nicotine lozenges products until Dec 31, 2027. 

"To reduce access to alcoholic beverages and promote a healthier lifestyle, the government has increased the excise duty rate on alcoholic beverage products by 10 per cent starting Nov 1, 2025. 

"The additional revenue from cigarettes and alcoholic beverages will be distributed to the Health Ministry for, among others, its lung health initiative and to treat diabetes and heart diseases," he said when tabling Budget 2026 in the Dewan Rakyat today. 

-- BERNAMA