Health think tank calls for cigarette tax hike to 65 sen next year

A health think tank has called for a significant increase in cigarette tax, proposing a five-year tax pathway that could generate over RM2 billion in additional annual revenue by 2031. Currently, Malaysia's tobacco tax accounts for 58.6% of retail prices, falling short of the World Health Organization's recommended 75%. The Galen Centre for Health and Social Policy's CEO, Azrul Khalib, stated that the 2027 budget increase was a step in the right direction but not sufficient to restore the real value of the tax after years of rising prices, incomes, and healthcare costs.

The think tank emphasizes the need for stronger enforcement against illicit cigarettes, better border and supply-chain controls, and independent monitoring of the illicit cigarette trade. They also propose allocating a defined share of additional tobacco tax revenue to tobacco control enforcement, smoking cessation services, and the treatment of non-communicable diseases.

The think tank argues that higher tobacco taxes can reduce consumption and encourage quitting, particularly among price-sensitive smokers, and that the policy should be accompanied by affordable cessation support.