PETALING JAYA: The government’s move to regulate liquid or gel products containing nicotine will ensure it has “total control” and prevent illicit trade in such products, said former customs department director-general T Subromaniam.
The government has imposed an excise tax at the rate of RM0.40 per millilitre on electronic cigarettes (e-cigarettes), liquid or gel containing nicotine with effect from April 1, with 50% of the excise revenue to be channelled to the health ministry.
Subromaniam said six countries in Asean had already regulated the use of nicotine in e-cigarettes, vape liquids and gel by taxing them.
“Even though the sale of e-cigarettes and vape liquid and gels may be deemed illegal in countries other than the six, they are widely available at the expense of government revenue,” he told FMT.
“It is better to regulate and control these products so that our enforcement agencies like the customs department, police, health ministry, and domestic trade and cost of living ministry can have total control over all aspects of its trade, thus preventing the mushrooming of illicit trade in it.”
He said the finance ministry’s requirement for local manufacturers of nicotine liquids or gel products to register their activities with the customs department would give the department the jurisdiction it needed to monitor any illicit importers and manufacturers.
Economist Carmelo Ferlito of the Center for Market Education welcomed the move to regulate liquid or gel products containing nicotine by taxing them.
He said a good harm reduction strategy should be centred on the idea of preserving pleasure consumption, and at the same time, minimising or eliminating health repercussions.
Ferlito said the legal framework surrounding harm reduction needed to outline preferential fiscal treatment to encourage consumers to move away from traditional nicotine products.
“I think that regulation is good. At least (the government) is not moving to ban (these products),” he said.
“If we wish to nudge consumers towards alternative nicotine products, their fiscal treatment should be more favourable than the one on traditional nicotine products.
“There should be an advantage for the consumer, otherwise taxation, like for cigarettes, will just increase business for smugglers and illegal producers.”
There has been controversy over the removal of vape liquids and gels from the poisons list last week, clearing the way for its over-the-counter sale to the public, including children.
Prime Minister Anwar Ibrahim yesterday justified the move by saying that taxing vape products would help curb the widespread usage of such products which were being sold at cheaper prices now.
He also promised that the much-awaited Tobacco Products and Smoking Control Bill, which regulates all smoking products, including smoking materials containing nicotine, would be tabled in the Dewan Rakyat next month.
The health ministry said the bill would ensure “comprehensive control” over nicotine preparations or gels containing nicotine in e-cigarettes or vapes. - FMT
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