Posts Tagged ‘excise duty’

Malaysian Import Beer Tax Are Crazy

January 30, 2021 – 2:02 pm Comments Off

malaysia and beer

As I have now opened my owned beer shop, I started to import beers for my shop. First time doing my tax calculation really spooked me off.

Duties Calculation – PER LITER
1) Import Duty = Qty in liter  x Import Duty Rates
2) Excise Duty 1 = Qty in liter x Excise Duty Rates
3) Excise Duty 2 = (Import Duty +Excise Duty+ Total Value of goods) x Excise 2 Rates
4) Sales Tax =  (Import Duty + Excise  Duty 1 + Excise Duty 2 + Total Value of Goods ) x Sales Tax Rates

You have to go through 3 duty and 1 tax to clear from custom.

Wines     Brandy/Whisky       Rum/Vodka/Gin        Beer
Duty                7              58                                 55                                   5
Excise 1         12             30                                30                                    7.4
Excise 2         15%         15%                             15%                                 15%
Sales tax        5%           5%                               5%                                   5%

Trust me when the first 2 duties add together is already quite crazy.

Just simple calculation a box of RM0 (24 bottles x 330ml) beer will cost RM118.60 just on the tax without declaring a single cent on the goods. That already RM4.95 before the beer add on price and logistic. When you add on the goods price and the extra tax on Excise 2 and Sales Tax is just become havoc.

For beer drinkers in Malaysia, is fair for us to asked what the country did for us since we contribute so much extra money to them. We have to forgive the proper imported beers for the expensive price because of the expensive tax and bad exchange rate.

I hope the next budget can do something about this. I really think is not fair for the consumer to absorb all this taxes while the government is doing nothing to stop the illegal smuggled beer into the country. I can’t blame the smuggler as this is a lucrative business. Beer selling at RM5 a can get around 100% margin as the real cost is around RM2 per can without paying tax.

Will I see the day that beer excise duty will be reduce… that we have to sound our concern  out loud! For the glory of beers in Malaysia to be reasonably price.

Is Time To Voice Out!

July 17, 2021 – 9:21 am Comments Off

I saw this article from The Star Online, title “PM invites ideas, input for Budget 2013″. The first thing that cross my mind is to reduce the beer excise duty. In the article it’s written that we can submit our view to the Finance Minister which is our Prime Minister Datuk Seri Najib Tun Razak.We can Submit our view at our PM’s blog

Is time we tell our view on this matter. I think Beer excise duty should reduce from RM7.40 to RM3.70 and take away the 15% ad valorem. This will greatly reduce our beer price, although it won’t effect so much on the beer price at the pub but you’ll see RM2-RM3 strip away from the price tag of the beer in any outlet including Hypermarket. This will price locally made beer at RM4-RM5 at hypermarket which is more like our hawker food price. And can shack off RM3-RM4 for imported beer as well.

Of course they are many more things in the Budget 2013 that we can talk about but I think this is one great issue that the Government can study. Although is not that long till 28 September 2020 – the day of the Budget 2013 announcement, it still have some time for the Government to study it.

Reducing excise duty and take away 15% ad valorem will greatly impact all sectors. Smuggled beers will be greatly reduce, fake beer product will also reduce to protect the consumer, tourism sector can see the increase the volume of beer consumptions and more positive feedback from their stay, more consumer can effort to drink beer, consumption of the actual figure can be more accurate, cost of living for people who consume beer can also save some money, boost of F&B business can be great increase and many more great things.

Although we are an Islamic country in many ways, reducing excise duty on beer seems far fetch but in reality this action will gain more positive feedback to the growing nation and respect from many more other country to follow the steps.

Beside that we should also open up Microbrewery License in Malaysia. Malaysia have plenty of raw ingredient that brewmaster can explore and create new taste of beer. The microbrewery license should be given so that Malaysia can be known for it’s ingredient of food, but sadly way behind of our neighbouring country like Thailand, Singapore and Indonesia. Many tourist didn’t expect that Malaysia have great food even Anthony Bourdain & Gordon Ramsay didn’t showcase the interesting food in Malaysia. We are the hidden gems of food in Asia. Microbrewery can open up more F&B potential and increase tourist attraction. As Craft Beer culture are growing, this will be another market segment that can boost Malaysian image.

This maybe far fetch for a country that pride itself on Islam, but the country must be open mind. This can change many things and can create even more jobs especially in this bad economy times. I wish the Government have studied the beer culture by now in Malaysia. If not, this view is a “Syok sendiri” from the people to the government.

Please go to and write down our beer rights. Let’s work together to make this happen. This maybe the best budget for the Beer industry people if we all voice out our thoughts and needs. Cheers, may this be reality!

BeerSay 1.0 – #1 Reduce Tax

May 29, 2021 – 9:49 am Comments Off

Malaysia is rated the second highest excise duty for beer in the world. It’s not fair especially if you looking at the earning perspective. A can of beer in Langkawi is selling at RM1.50 – RM2.00, a can of beer in normal coffee shop here sell around RM6 – RM8.50. That is 4 times the price after tax and earning.

I believe we have seen many cheap beer selling around RM3-RM5 at many local sundry shop, chinese medicine shop and certain 24 hours mart. I believe many of those are smuggle goods. According to import tax + excise duty + 15% on “Ad Valorem” duty payment. No matter how I calculate the beer can’t be that cheap. Unless there’s is some loopholes which I miss out.

Excise duty for per liter of beer is RM7.40. A can which is 330ml is RM2.45 just on duty alone. It doesn’t make sense to get imported beer below RM5. If we keep buying these beer, all this smuggle goods will not help the economy but will help those syndicate from profit a lot of money into it.

Benefit on reducing tax will curb some smuggle beer, which will profit more on the duty earn. Cheaper beer mean higher consumption which can benefit many sectors. The reason the government keep the excise duty high on beer is because of few agendas. Firstly basically based on the islamic country. Secondly alcohol abuser turn to social problems. Thirdly of bad image on alcohol. Mostly focus on all the bad things that relate to alcohol.

In that relation there’s no proper government studies how beer have help many industry including the tourism, F&B outlet, retails, printing, event company and many more. Beer company spend millions of Riggit on event, this create earning and jobs. F&B hire people to work, with more people drink to late night, means that more shift on jobs and more people able to work or earn extra income. With that extra GST from F&B, is extra earning as well.

The worse scenario is, the excise duty the drinkers pay for seldom benefit back to the drinkers. Did they build more hospital, recreation areas, better education for children or better public transport. The money the drinkers have paid for the beer duty didn’t channel back to the one contribute, which is quite sad.

Reducing tax will greatly enhance many things, of course there’s always pros and cons. By reducing the tax some may abuse more beer then before, but maybe the tourism will benefit from foreigners spending more in F&B outlet.

I think the government should really study the beer industry, contribute billions of Riggit every year yet there not much appreciation for this industry. Always treated as something bad and sinful but in actual fact is much better then most of the shelf food product out there that can cost different sickeness, yet get better encouragement then anything else. Franchise of foreign brand of fast food which encourage more oily, calories, artificial flavouring and sugar will not benefit our healt, yet is ignore on that segment.

Reduce the tax from the existing RM7.40 to half of it at RM3.70 will be good for all the segment in the industries. Can of beer will be selling around RM4.50-RM6.50. Which is more justify then what they selling right now. On F&B outlet the beer price will not change that much, but will easily see a reduce from the pressure of the consumers.

Although many will not agree with me for what I just written, but name me the real cons about this situation. Drink and drive is a different enforcement that not relate so much on cheap beer. Did drink and drive when down when the excise duty is up? Did crime rate when down when the excise duty is up? Did liver sickness goes down when the excise duty is up? Did wife abuser or violence behaviour when down when the excise duty is up? The answer is NO, then the argument of increasing the excise duty doesn’t make sense. As the problems doesn’t relate to beer consumption but other factors that the Government must look into it.

For me, reducing tax will gain more benefit then maintaining it high. More sectors will gain and more jobs can be created. What’s your 2 cent?

No Excise Duty Increase On Beer – Budget 2012

October 7, 2020 – 4:50 pm Comments Off

malaysia and beer

The Budget 2012 beer excise duty did not increase! This is good news to all beer drinkers! Continue enjoy your Oktoberfest, Awesome!

No Excise Duty Increase For Beer!

October 15, 2020 – 4:43 pm Comments Off

malaysia and beer

The 2011Budget will not increase the excise duty for beer. This is good news to all beer drinkers! Awesome!

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