After a more than 10-year stagnant tobacco tax rate, Malaysia’s cigarette excise duties went up by only 2 sen per stick in Budget 2026. We explore the discrepancies between our tobacco taxes and the national health expenditure to treat smoking- and vaping-related diseases, and what should be a meaningful rate of tobacco tax to change smoking behaviours.


Image credit: Shutterstock

After a more than 10-year stagnant tobacco tax rate, Malaysia’s cigarette excise duties went up by only 2 sen per stick in Budget 2026. We explore the discrepancies between our tobacco taxes and the national health expenditure to treat smoking- and vaping-related diseases, and what should be a meaningful rate of tobacco tax to change smoking behaviours. Image credit: Shutterstock

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