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The Malaysian government is considering raising tobacco taxes in the 2026 Budget, aligning with public health commitments. Prime Minister Anwar Ibrahim, a non-smoker, expressed support for the increase, noting that tobacco taxes haven't been reviewed for a considerable time. The current rate is 58.6% of the retail price, with previous proposals suggesting an increase to 60-75%. This measure is part of a broader health-based taxation plan encompassing sugary drinks, vaping products, and alcohol, aiming to discourage unhealthy habits and combat the rise of non-communicable diseases (NCDs).
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