Malaysia Ties Vape Tax Policy to Court of Appeal Nicotine Ruling
The Malaysian government will align its taxation and duty policies for nicotine-containing vape products with the upcoming Court of Appeal decision. This announcement by the Finance Ministry follows a major legal challenge regarding the controversial removal of liquid nicotine from the nation’s Poisons List.
On May 15, the Kuala Lumpur High Court ruled in favor of a judicial review filed by three non-governmental organizations (NGOs): the Malaysian Council for Tobacco Control, the Malaysian Green Lung Association, and Voice of the Children. The court declared the government’s April 2023 decision to exempt liquid nicotine and gel from the Poisons Act 1952 “irrational” because it bypassed mandatory consultation with the Poisons Board.
In response to parliamentary inquiries regarding the tax implications of this ruling, the Finance Ministry confirmed that the Attorney-General’s Chambers has appealed the High Court’s judgment. Consequently, any final decisions on levying duties or taxes on these vape products are officially suspended pending the appellate court’s verdict.
The legal battle began in July 2023, shortly after the Health Ministry gazetted the exemption that effectively legalized nicotine vapes for commercial distribution and taxation. The NGOs continue to seek a court order declaring the exemption entirely null and void to safeguard public health.
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