KUALA LUMPUR, Sept 23 – Two medical groups are calling on the government to raise excise taxes and the minimum price of cigarettes in the upcoming Budget 2025, citing the need to curb tobacco consumption and improve public health.
The Federation of Private Medical Practitioners’ Associations, Malaysia (FPMPAM) and the Addiction Medicine Association, Malaysia (AMAM) argue that increasing cigarette prices and taxes will discourage smoking, particularly among youth and low-income groups, while generating funds for tobacco control initiatives.
“We urge the government to increase the minimum price of cigarettes, which has remained stagnant at RM12 per pack since 2020. Raising the minimum price to a more accurate level of RM13.00 or RM13.50 will help strengthen the effectiveness of tobacco control measures and further reduce smoking rates,” FPMPAM president Dr Shanmuganathan Ganeson said in a joint statement today.
Dr Shanmuganathan said the government should consider implementing a structured, predictable tax that increases annually at a fixed rate.
He said the idea is that steadily increasing the cost of cigarettes would deter smoking, particularly among vulnerable groups, while signalling the serious health and financial risks associated with smoking.
“By raising the cost of cigarettes, we can effectively decrease consumption, prevent new smokers from picking up the habit, and support long-term health outcomes for the population. This measure is not just about revenue; it’s a critical public health tool in the fight against smoking-related diseases.”
Countries like Australia have successfully implemented structured, predictable taxes on cigarettes that increase at a fixed rate and schedule.
Australia has raised tobacco excise significantly to reduce smoking rates. Until 2010, the government adjusted tobacco taxes in line with inflation. However, a 25 per cent tax hike in April 2010 raised costs by about 7 cents per cigarette.
From 2013 to 2020, the excise rose by 12.5 per cent annually, along with adjustments based on average earnings. A pack of cigarettes now costs over A$40 (RM115), up from just a few dollars in the early 1990s, according to data from the Cancer Council of Victoria.
Most recently, the Australian government aims to cut daily smokers to below 10 per cent by 2025 and below 5 per cent by 2030, with an additional 5 per cent tax increase each year for three years, which commenced September 1 last year.
AMAM president Dr Steven Chow echoed these sentiments, urging the government to include these measures in Budget 2025 as part of wider efforts to protect public health.
“We strongly urge the government to include these adjustments in Budget 2025. These measures are important steps toward reducing smoking rates and improving public health outcomes in Malaysia,” Dr Chow said.
“These actions, combined with broader tobacco control efforts, will help protect future generations from the harmful effects of smoking and align with the nation’s commitment to safeguarding the health and wellbeing of its citizens.”
Budget 2025 is expected to be presented in Parliament on October 18.
FPMPAM, established in 1989, represents over 5,000 members across seven state-level associations, focusing on private healthcare quality, professional development, and medical ethics. AMAM, formed in 2006, aims to advance addiction medicine in Malaysia, with members consisting of general practitioners, specialists, and allied healthcare professionals involved in the field.
