British American Tobacco Malaysia - BAT Malaysia lauds Budget 2022 announcement for reduced-risk products although urges caution on excise rate

British American Tobacco (Malaysia) Berhad (BAT Malaysia) lauds the Malaysian Government for indicating that it will legalise nicotine vapour products. BAT Malaysia is referring to the announcement made by Finance Minister, YBM Dato' Sri Tengku Zafrul bin Tengku Abdul Aziz, during the tabling of the 2022 Budget earlier today that excise will be levied on these products.

The introduction of excise duty for nicotine vapour products is a step in the right direction for tobacco harm reduction in Malaysia. Regulation will not only allow vape users access to reduced-risk alternatives to smoking, but also ensure the products used are compliant to quality and safety standards.

BAT Malaysia has a clear purpose. To build “A Better Tomorrow” by reducing the health impact of our business. And, in so doing, create multi-stakeholder value. The announcement today plays a key role in this.

However, BAT Malaysia is of the opinion that any taxation framework for reduced-risk products must be well considered and encourage switching from traditional cigarettes and not drive consumers to cheap, unregulated black market alternatives. If not, the mistakes of high tobacco excise rates will be repeated where currently the government loses RM5 billion annually.

Nedal Salem
Managing Director
BAT Malaysia
Kuala Lumpur, 29 October 2021

For more information, please visit www.batmalaysia.com

About British American Tobacco (Malaysia) Berhad

British American Tobacco (Malaysia) Berhad is the leading tobacco company in Malaysia. This strong position is built upon a portfolio of high quality products designed to meet diverse consumer preferences. Our portfolio includes world- famous brands like DUNHILL, KENT, PETER STUYVESANT, PALL MALL and ROTHMANS. British American Tobacco (Malaysia) Berhad employs almost 500 employees who are involved in a wide spectrum of disciplines, from generating insights, developing brands and making these available on a national level. In addition, we also set leading edge talent development practices as well as ensure a strong foundation of corporate governance and shareholder relations. The company is part of the British American Tobacco group, which is the world’s most international tobacco group and the second largest stock market listed tobacco group by global market share.