KUALA LUMPUR, Oct 10 — There will be an increase in excise tax for alcohol and tobacco products starting this November 1.

Prime Minister Datuk Seri Anwar Ibrahim, during his tabling of the Budget 2026 said that the decision is in line with the national agenda of a more healthy Malaysia.

The excise duty for cigarettes will be increased for two sen per stick while cigars, cheroots and cigarillos will see an increase of RM40 per kilogramme and another RM20 per kilogramme for heated tobacco products.

Meanwhile the excise duty for alcoholic beverage products will see a 10 percent increase – which was raised in order to reduce the access to alcoholic beverages while also promoting a healthier lifestyle amongst Malaysians.

At the same time, the government will be extending the import duty and sale tax exemptions toward Nicotine Replacement Therapy products which now covers nicotine mist products and nicotine lozenges until December 31, 2027. 

All of the additional earnings from the increased tobacco and alcohol tax will be channeled to the Ministry of Health to be used for the Health Ministry’s Lungs Care Initiative as well as for diabetes and heart diseases treatments. 

 Malay Mail – Malaysia