Malaysia’s excise rate on beer is the second highest in the world, alongside Singapore and behind Norway, despite both countries having much greater purchasing power than Malaysia. In 2016, Norway’s household income per capita was more than 9 times greater than Malaysia’s.

Furthermore, the current excise regime is inequitable, with a higher tax rate imposed on lower alcohol content beverages, such as beer and stout, compared to higher alcohol content beverages like wine and spirits. According to international best practices, excise tax on alcohol should correspond with the alcohol content of the beverage, with the highest duties being imposed on liquor and spirits.

Our current inequitable tax regime, with high excise placed on beer, is causing many price-conscious consumers to turn to illicit (contraband, counterfeit and unregulated) beer.