Excise Duty

Excise duty is levied on the manufacture of the following goods:

  • Alcoholic Beverages
  • Tobacco Products
  • Passenger motor vehicles
  • Playing cards

With effect from 1 July 2019, excise duty will also be levied on 'sugar sweetened beverages'. Excise duty will apply at 40 sen per litre based on a combination of tariff heading and sugar content as follows:

  • Tariff heading 20.09 where the sugar content exceeds 12g/100ml
  • Tariff heading 22.02 where the sugar content exceeds 5g/100ml

 

Registration Requirements

Any person manufacturing excisable goods is required to register.

 

Filing & Payment

Excise duty generally becomes payable on the movement of the goods out of the factory premises, although some concessions do exist for motor vehicles. While the legislation is yet to be finalised, it is anticipated that concessions will also be given for sugar sweetened beverages, including filing on a monthly basis. Notwithstanding, robust recordkeeping of daily stock movement would be essential to ensure correct reporting.
 

How We Can Help

Below are the main services we provide in respect of excise duty. We also offer bespoke services, so if these do not meet your needs, please contact us for further discussion.

  • Assistance to apply for licenses
  • Assistance to classify products
  • Assistance in setting up or reviewing a control framework for excise purposes

 

Contact us

Raja Kumaran

Tax Executive Director and Indirect Tax Lead, PwC Malaysia

Tel: +60 (3) 2173 1701

Yap Lai Han

Tax Executive Director, PwC Malaysia

Tel: +60 (3) 2173 1491

Chan Wai Choong

Tax Executive Director, PwC Malaysia

Tel: +60 (3) 2173 3100

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