Malaysia Awaits Court Ruling on Vape Taxation

Malaysia's government is holding off on making any decisions about the taxation and duties on vape products containing nicotine. The Ministry of Finance has announced that any future government actions will be in line with the upcoming decision from the Court of Appeal.

The Ministry acknowledged the High Court of Kuala Lumpur's judicial review decision concerning the exemption of nicotine liquids and gels from the Poisons Act 1952. However, since the Ministry of Health, through the Attorney General's Chambers, has appealed this High Court judgment, the government is deferring its stance.

Previously, the High Court ruled that the Minister of Health and the government's decision to exempt e-cigarette liquids and gels from the list of controlled substances under the Poisons Act 1952 was irrational. Justice Datuk Aliza Sulaiman found that the exemption, introduced via the Poisons (Amendment of Poisons List) Order 2023, was made without adequate consultation with the Poisons Board.

The judge suggested that the decision to exclude nicotine liquids and gels for e-cigarettes from the Poisons Act's control was primarily driven by economic factors, specifically in light of the proposed excise duty on these products. The government's final position on the matter now rests on the outcome of the appeal.