THE entire vape ecosystem including manufacturers, retailers and end-users should play a role in determining the direction of the industry so it can transform into a competitive industry that contributes to the nation’s economy.
After all, industry players and vape non-governmental organisations (NGOs) have long championed the development of the industry by advocating for taxation and a regulatory framework that is differentiated from tobacco, according to the Malaysian Vape Chamber of Commerce (MVCC) information head Ashraf Rozali.
“It is time for members of the industry, including manufacturers and consumers, to show their support by participating in our effort to advocate for initiatives that support taxation and regulations,” he pointed out.
“We know that many individuals are hesitant about voicing their support for the industry, but we must acknowledge the impact of this industry which comprises thousands of Bumiputera entrepreneurs and generates millions of ringgit a year. It is time for us to come forward and not hide behind the scenes.”
Recently, the Government has announced that the tax on vape products will increase by 200% at RM1.20 per millilitre (ml) for nicotine e-liquids and non-nicotine e-liquids.
Most industry players, especially manufacturers, feel that such rate is too high and will negatively impact the industry following a price in the market.
“For example, each 30ml bottle of e-liquid will be taxed at RM36. With this rate, the estimated retail price of vape e-liquids will reach twice the current price per 30ml bottle,” justified Ashraf.
“However, the new tax rate will not only affect one party (manufacturer) but will impact the entire ecosystem, including adding burden on consumers.”
At the same time, the Government has also announced recently that a regulatory framework for tobacco and vape will be tabled next year. While the industry supports measures to regulate the vape industry, Ashraf said it should be differentiated from tobacco.
“Vape products are not tobacco, and they should not be equated. Regulations for vape products should not be the same as for tobacco products,” he rationalised. “If regulations for both products are the same, it will only continue to benefit tobacco companies and will not incentivise smokers to switch to vape.”
Instead, vape products should be recognised as a tool that can help smokers quit smoking, hence any regulations introduced must include elements that can encourage smokers to switch to vape which is also proven to be less harmful than tobacco.
As such, Ashraf called on the public to support the industry by signing a petition for the Government to review the taxation rate for vape so that it takes into account the interests of the local industry. Moreover, the petition calls for the introduction of vape regulations that are differentiated from tobacco.
The petition can be signed at www.mvia.com.my. – Dec 17, 2021
