Special tax imposed on e-cigarette devices, gels and juices from 2021



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PUTRAJAYA: During importation, excise duties will be imposed for e-cigarette devices, non-electronic cigarette devices, as well as e-cigarettes and vape gel or juices, including non-nicotine types, with exceptions granted to local manufacturers, he said. the Director General of the Royal Malaysian Customs Department. Datuk Seri Abdul Latif Abdul Kadir. (pix)

He said excise duties will be imposed on those items starting in 2021.

Devices will be charged a special tax at an ‘ad valorem’ rate of 10 percent, while liquids and gels will be charged a rate of 40 sen for each milliliter, he added.

Abdul Latif said that local manufacturers would be licensed under Section 20 of the Excise Act 1976 with a license fee of RM 4,800 per year, while warehouse license fees under Section 25 of the same law were of 2,400 ringgit per year.

“Local manufacturers have to submit their application in the respective area or in the Customs Department offices of the state where the factory or warehouse is located before December 15, 2020,” it said today in a statement.

The documents required for the application include an application letter for the excise license; Customs Form No. 1, certificate of company or business registration under the Malaysian Business Commission or the local authorities of Sabah, Sarawak and Labuan Federal Territory; list of raw ingredients; list of finished products; manufacturing flow diagram; annual manufacturing capacity; and recognition of nicotine content in liquid or gel.

“Licensees must adhere to the licensing guidelines and attach a bank guarantee to guarantee the duty or tax,” he said.

Abdul Latif said manufacturers can refer to the excise duty FAQ page on the Customs website at http://www.customs.gov.my/ms/pages/utama.aspx. -Called



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