Excise duty imposed on e-cigarette devices, gels, juices from 2021

PUTRAJAYA: Excise duty for electronic cigarette devices, non-electronic cigarette devices as well as electronic cigarettes and vape gel or juices, including non-nicotine types, will be imposed during importation, with exceptions given to local manufacturers, said Royal Malaysian Customs Department director-general Datuk Seri Abdul Latif Abdul Kadir.

He said excise duty will be imposed on those items beginning 2021.

Devices will be charged excise duty at an 'ad valorem' rate of 10 per cent, while liquids and gels will be charged a rate of 40 sen for each millilitre, he added.

Abdul Latif said local manufacturers would be licensed under Section 20 of the Excise Act 1976 with a licence payment of RM4,800 a year, while warehouse licence fees under Section 25 of the same act was RM2,400 a year.

"Local manufacturers have to apply at the respective zone or state Customs Department offices where the factory or warehouse is located before Dec 15, 2020," he said in a statement today.

The documents required for application include an application letter for the excise licence; Customs form No. 1, business or company registration certificate under the Companies Commission of Malaysia or the local authorities for Sabah, Sarawak and Federal Territory of Labuan; raw ingredients list; finished products list; manufacturing flow chart; annual manufacturing capacity; and acknowledgement of nicotine content in liquid or gel.

"Licence holders are required to comply with licensing guidelines and to attach a bank guarantee to secure the duty or tax," he said.

Abdul Latif said manufacturers could refer to the frequently asked questions page regarding the excise duty at the Customs website at http://www.customs.gov.my/ms/pages/utama.aspx.

-- BERNAMA