Penang: The government's decision to increase excise duty rates on tobacco and alcoholic products marks a positive step towards fostering a healthier society. Penang State Executive Councillor for Youth, Sports and Health Daniel Gooi Si Zen said the initiative demonstrated the government's commitment to enhancing public health policies and reducing the burden of chronic diseases caused by excessive tobacco and alcohol consumption.
According to BERNAMA News Agency, Prime Minister Datuk Seri Anwar Ibrahim announced that the revenue from the increased excise duty will be channelled to the Ministry of Health (MOH) for development purposes and to enhance efforts to combat diseases such as lung disease and diabetes. Gooi expressed his support for this approach, emphasizing that it not only helps reduce unhealthy habits among the people but also indirectly fosters a culture of healthy living and promotes the overall well-being of society.
Gooi further explained that the rate increase is justified as a means of public education and expressed confidence that the additional revenue generated will have a positive impact on national health and sports development. He suggested that part of the revenue collected could also be allocated to the Ministry of Youth and Sports (KBS) for sports development initiatives, thereby encouraging sporting activities among the public, promoting a healthier and more active population.
The Consumers Association of Penang (CAP) believes that the recent increases in tobacco prices are insufficient. Specifically, they argue that the two-sen increase per cigarette, along with the RM40 per kilogram increase for cigars, cheroots, and cigarillos, and the RM20 per kilogram increase for heated tobacco products, are too low. CAP Education Officer N. V. Subbarow stated that while the government's efforts are appreciated, the tax rate should be reviewed, as smokers are still likely to buy tobacco products despite the price increase.
Subbarow expressed concern that the increase does not significantly affect smoking habits because even with the higher prices, cigarettes remain affordable. He highlighted that most smokers are young people and urged the government to conduct a more in-depth study and consider a more reasonable increase to protect the younger generation, who are the future of the nation. He also supported the increase in excise duty for alcoholic beverages, noting that the 10 per cent increase is adequate to reduce alcohol consumption and help manage related health risks.
In tabling Budget 2026 in the Dewan Rakyat yesterday, the Prime Minister, who is also the Minister of Finance, announced that excise duty rates on tobacco and alcoholic products would be increased, effective Nov 1, with the additional revenue channelled to MOH.