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Budget 2027: CAP Calls For Higher Cigarette Tax To Curb Smoking Among Youth

Penang: The Consumers' Association of Penang (CAP) has urged the Finance Ministry to consider increasing the sales tax on cigarettes in Budget 2027 as a measure to curb the rising smoking habit among youths.

According to BERNAMA News Agency, CAP senior education officer N.V. Subbarow highlighted alarming statistics showing that 43,019 secondary school students and 341 primary school students are currently smoking. Smokers reportedly spend nearly RM700 monthly on cigarettes, which contain 6,000 chemicals. Subbarow emphasized that higher prices could make tobacco products less affordable, potentially reducing overall consumption and encouraging users to quit or cut down on smoking. This move could also deter teenagers and young people from starting to smoke, which is why CAP is advocating for a mandatory sales tax on cigarettes.

Subbarow, also an anti-smoking activist, noted that increasing the sales tax on cigarettes could lead to a reduction in government spending by an average of RM16 billion annually, as it would decrease the costs associated with treating smoking-related diseases. He cited the World Health Organisation's recommendation of price and tax measures as effective strategies for reducing tobacco use, a policy that has shown positive impacts in various countries.

Budget 2027 is slated to be presented by Prime Minister and Finance Minister, Datuk Seri Anwar Ibrahim, on October 9.

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