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Kuala Lumpur, Malaysia – A leading health think tank is advocating for a substantial increase in tobacco excise duties, proposing a minimum of RM0.77 per stick for cigarettes and other tobacco products in the upcoming 2026 federal budget. This call to action, spearheaded by the Galen Strategic Media, aims to curb smoking rates and generate much-needed revenue for healthcare initiatives.

Azrul Khalib, CEO of Galen Strategic Media, emphasized the urgency of the matter, stating that current tobacco taxes are insufficient to deter smokers, particularly among vulnerable populations. He argued that a more aggressive tax strategy is necessary to effectively reduce consumption and protect public health.

“The current excise duties are simply not doing enough. We need a significant jump to discourage smoking and to make tobacco products less accessible, especially to young people,” Khalib explained. “This isn’t just about revenue; it’s about saving lives and reducing the burden on our healthcare system.”

The proposed increase is based on the principle of 'sin tax,' where taxes are levied on products deemed harmful to health and society. The rationale behind this approach is that the increased cost will discourage consumption, while the revenue generated can be channeled into public health programs, smoking cessation initiatives, and healthcare infrastructure.

Economic and Health Benefits:

• Reduced Smoking Rates: Higher taxes have consistently been shown to decrease smoking prevalence, particularly among price-sensitive groups like young adults and low-income individuals.
• Increased Government Revenue: The additional excise duties would generate significant revenue that could be allocated to vital public services.
• Improved Public Health: Reduced smoking rates would lead to a decrease in smoking-related illnesses, such as lung cancer, heart disease, and respiratory problems, ultimately easing the strain on the healthcare system.
• Discouraging Illicit Trade: While concerns about illicit trade are valid, Galen Strategic Media believes that a well-managed and progressively implemented tax increase can minimize this risk. Effective enforcement and collaboration with relevant agencies are crucial.

Addressing Concerns About Illicit Trade:

Galen Strategic Media acknowledges the potential for increased illicit trade as a result of higher tobacco taxes. However, they argue that this risk can be mitigated through a combination of strategies, including:

• Strengthening Enforcement: Increasing resources and improving the effectiveness of enforcement agencies to combat the smuggling and sale of illegal tobacco products.
• Implementing Track and Trace Systems: Adopting advanced technologies to track tobacco products throughout the supply chain, from manufacturing to retail, making it easier to identify and intercept illicit goods.
• Public Awareness Campaigns: Educating the public about the dangers of buying illegal tobacco products, both in terms of health risks and supporting criminal activities.

The think tank’s recommendation comes at a time when Malaysia is grappling with rising healthcare costs and a growing prevalence of non-communicable diseases, many of which are linked to tobacco use. The 2026 budget presents a crucial opportunity for the government to prioritize public health and implement policies that will have a lasting positive impact on the nation’s well-being.

Galen Strategic Media urges the government to seriously consider their proposal and to engage in a constructive dialogue with stakeholders to develop a comprehensive and effective tobacco control strategy.