Photo: thestar.com.my
"Health Boost: Cigarette and Alcohol Taxes Set to Rise in Budget 2026"
The Malaysian government, led by Prime Minister Datuk Seri Anwar Ibrahim, will increase excise duties on cigarette and alcoholic drink products starting Nov 1, 2025, aiming to improve public health.
- Starting Nov 1, 2025, the excise duty on cigarette products will rise by 2 sen per stick, as announced by Prime Minister Datuk Seri Anwar Ibrahim during Budget 2026.
- Duties on cigar, cheroot, and cigarillo products will increase by RM40 per kilogram, while tobacco content in heated tobacco products will see a rise of RM20 per kilogram.
- The budget proposal includes extended import duty and sales tax relief on alcoholic drink products, reflecting the governments strategy to promote healthier lifestyle choices.
Why It Matters
This tax increase reflects Malaysias commitment to addressing public health issues related to smoking and alcohol consumption. By raising excise duties, the government aims to discourage unhealthy habits and reduce healthcare costs associated with tobacco and alcohol-related diseases.