Customs to consider imposing duty on IQOS

PETALING JAYA: The Customs Department is aware of the public sale of IQOS devices and Heets, the tobacco sticks it uses.

Responding to a query from theSun as to whether IQOS should be subject to tax in line with the government’s aim to reduce tobacco consumption for health reasons, Customs Director-General Datuk Seri Subromaniam Tholasy said: “We are still studying this as the product is new. There is already excise duty on the tobacco (in Heets). As for the device, it is an issue of classification.

“That device is an electronic gadget. Classification of a product is something international and we will need to consult the World Customs Organisation and other countries.

“However, we are open to the idea and will further study this,“ he added.

Checks by theSun revealed that IQOS sets are retailed here mainly by vape stores and upmarket tobacco dealers, at between RM260 and RM600, depending on what accessories are included.

Meanwhile, Heets tobacco, which are also available at petrol stations and convenience stores, retails at RM14 for a box of 20s – much cheaper than a box of premium cigarettes sold at RM17.40.

At its price, excise duty on each stick of Heets is about 24 sen, about 40% lower when compared to duty of 40 sen on a regular cigarette.

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