Why no cigarette sales tax in 2027 Budget, asks consumer group

GEORGE TOWN: Millions are being spent on smoking-related diseases but there was no new sales tax on cigarettes in the 2027 Budget.

This was highlighted by the Consumers' Association of Penang (CAP) who expressed its disappointment on the lack of taxation on cigarettes.

CAP education officer N.V. Subbarow said the government continued to spend millions on diseases caused by cigarette smoking, making the absence of a tax on cigarettes a major disappointment.

"The government has provided substantial financial assistance to Malaysians in next year's budget. However, the lack of taxation on cigarettes remains a concern," he said today.

Subbarow said cigarettes were popular among teenagers, students and youths, and the absence of tax could lead to more people becoming addicted to smoking.

He also expressed disappointment that the budget did not mention any further increase in cigarette excise duty.

CAP had repeatedly urged the government to raise cigarette sales tax in the 2027 Budget to curb smoking among young people.

It said the measure was needed amid concerns over smoking among secondary and primary school students.

New statistics showed 43,019 secondary school students and 341 primary school students were smoking cigarettes.