KUALA LUMPUR, Oct 7 — The Galen Centre for Health and Social Policy today launched a new briefing note, “Year 2027: Raise and Restructure Cigarette Excise Duty,” calling on the government to use Budget 2027 and the upcoming year to introduce a substantial corrective increase in cigarette excise duty and establish a predictable five-year tax pathway to 2031.
The briefing note recommends increasing cigarette excise duty from the current RM0.42 to RM0.65 per stick in 2027, followed by scheduled increases to RM0.72 in 2028, RM0.80 in 2029, RM0.88 in 2030 and RM0.95 by 2031. The proposed 2027 increase would add RM4.60 in excise duty for a 20-stick pack.
“Malaysia went for a decade without increasing cigarette excise duty. The two-sen increase introduced in Budget 2026 was an important first step, but it did not restore the real value of the tax after years of rising prices, incomes and healthcare costs,” said Azrul Mohd Khalib, Chief Executive of the Galen Centre.
