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During the tabling of Belanjawan 2026 today, 10 October, Prime Minister Datuk Seri Anwar Ibrahim announced that the government will increase the excise duty on liquor products by 10%, effective 1 November 2025
The move is part of a broader effort to reduce access to alcoholic beverages and encourage healthier lifestyles among Malaysians.
The increase comes alongside a series of other tax adjustments, including higher duties on cigarettes, cigars, and heated tobacco products
Tobacco products will see a 2 sen rise per cigarette stick, RM40 per kilogram for cigars and cigarillos, and RM20 per kilogram for heated tobacco products, in a push to further curb smoking rates.
The government is also extending tax exemptions for nicotine replacement products, which now include nicotine mists and lozenges, until 31 December 2027.
According to Anwar, who is also the Finance Minister, additional revenue collected from tobacco and alcohol taxes will be channelled to the Health Ministry to support public health programmes, including the MOH Lung Health Initiative and treatment for diabetes and heart disease.
These measures are in line with the Malaysia MADANI agenda, focusing on public health, prevention, and responsible living.
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