KUALA LUMPUR — The government will raise the excise duty on alcoholic beverages by 10 per cent starting November 1, 2025, as part of efforts to promote a healthier lifestyle and curb access to harmful substances.
Prime Minister Datuk Seri Anwar Ibrahim announced the measure during the tabling of Budget 2026 in Parliament today, under the initiative to strengthen the Agenda Nasional Malaysia Sihat.
“To reduce access to alcoholic beverages and encourage healthier living, the government has agreed to increase the excise duty on hard liquor by 10 per cent, effective November 1,” he said.
The move is part of a broader public health push that also includes significant hikes in duties on tobacco products.
Anwar said the excise duty on cigarettes will rise by 2 sen per stick, while cigars, cheroots and cigarillos will see an increase of RM40 per kilogram. Heated tobacco products will be taxed an additional RM20 per kilogram, based on tobacco content.
“We aim to reduce the prevalence of smoking in Malaysia. These adjustments are necessary to curb tobacco use and encourage cessation,” he told the Dewan Rakyat.
In tandem with the tax hikes, the government will extend the exemption on import duty and sales tax for nicotine replacement therapy (NRT) products—including nicotine. – October 10, 2025