Think tank urges Putrajaya not to appeal nicotine ruling

 Galen Centre for Health and Social Policy says the High Court’s ruling should be treated as an opportunity to correct a policy mistake.

The Kuala Lumpur High Court ruled last week that the health ministry’s 2023 decision to remove liquid and gel nicotine from the poisons list was unlawful and irrational.

PETALING JAYA:

A think tank has urged the government not to appeal a High Court ruling that struck down a ministerial order exempting liquid and gel nicotine from the poisons list, saying the decision presents an opportunity to strengthen public health policy and boost revenue through higher tobacco taxes.

In a statement today, the Galen Centre for Health and Social Policy said the court ruling had effectively resulted in a de facto ban on the sale of nicotine vapes and e-cigarettes, which would once again fall under the framework of the Poisons Act 1952.

Its CEO, Azrul Khalib, said the government now faced a choice of either seeking a stay and appealing the decision, reintroducing the exemption through another ministerial order, or adopting what it described as a “simpler, faster, and legally cleaner” solution by increasing cigarette excise duties.

“The court’s ruling should be treated as an opportunity to correct a policy mistake,” he said.

“The government should not spend public resources appealing a court decision that has effectively strengthened public health governance and done what politicians promised to do but lacked the courage to deliver.”

The health ministry decided in 2023 to remove liquid and gel nicotine from the poisons list, a move challenged by public health groups.

Last week, the High Court ruled that the decision was unlawful and irrational as it was made without properly consulting the Poisons Board, with the health ministry then stating it was considering possible further legal action.

Azrul noted the High Court’s finding that the exemption was procedurally flawed and motivated primarily by economic considerations aimed at enabling the taxation of vape products.

He argued that addictive substances such as nicotine should not be removed from poison control measures solely to create a new source of tax revenue.

Instead, Azrul said the government should raise cigarette excise duties to at least RM0.77 per stick. He said the Galen Centre’s estimates showed that increasing cigarette excise duties to that level could generate an additional RM771.8 million in tax revenue, on top of the more than RM3 billion already collected annually from tobacco excise.

Azrul said that by comparison, revenue from nicotine vape excise was relatively modest, noting a previous statement by the health minister that vape excise collections totalled about RM209.5 million since 2023.

He also argued that higher cigarette taxes would deliver stronger public health outcomes by reducing smoking rates and lowering the burden of tobacco-related diseases, which he said cost Malaysia an estimated RM16 billion annually in healthcare spending.

Azrul criticised the proposed two-sen increase in cigarette excise duty under Budget 2026, describing it as a token adjustment after years without substantial tobacco tax hikes.

While acknowledging concerns that higher cigarette taxes could fuel illicit trade, Azrul said this should be addressed through stronger enforcement, improved border controls, and anti-corruption measures rather than being used as justification for keeping tobacco taxes low.

“The High Court decision gives the government a real chance to reset. It can stop defending a bad decision and start making a better one,” he said.

“It can avoid a prolonged legal battle, recover potential lost revenue, (and) protect children and young people from nicotine addiction. It can reduce smoking-related disease and save lives.” - FMT