Tax Policy on Alcohol

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Tax Policy on Alcohol
Malaysia

The below version control table serves to document all updates made to the report. The purpose is to ensure the information is always accurate and up-to-date.

Version Number	Content Creation Date	Publishing Date	Section(s) Updated & Reason(s) for Update
V0	09 July 2024	12 July 2024	N/A (new report)
V1	08 May 2025	03 June 2025	All content has been reviewed and is still accurate. No updates were needed.

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1. General Requirements on Tax Policy for Alcohol

1.1 Import Duty (Customs Duty)

Import Duty are defined in in Customs Duties Order 2022 [2], as below:

Definition: A tax levied on the value of imported goods entering Malaysia.
Rate: The rate is typically a percentage of the Cost, Insurance, and Freight (CIF) value of the goods. The CIF value includes the product's original price, insurance cost during transport, and freight charges.
HS Code Dependence: The specific import duty rate depends on the product category and its Harmonized System (HS) Code. This internationally standardized system classifies traded goods. The HS Code for a product can be found through online resources or by contacting the manufacturer/supplier.
Rate Determination: The Royal Malaysian Customs Department (RMCD) website provides a searchable database where you can find HS Codes and their corresponding import duty rates: https://www.customs.gov.my/en

1.2 Excise Duty

Excise Duty are defined in Excise Duties Order 2022 [3], as below:

Definition: An indirect tax imposed on specific goods manufactured or imported for domestic consumption in Malaysia. It serves as a regulatory tool to influence consumer behavior and generate revenue.
Applicable Goods: Excise duty applies to a limited range of goods, including [1]:
- Alcoholic beverages (beer, wine, spirits, etc.)
- Premix preparations
Rate Structure: Excise duty rates vary significantly depending on the product category. For example, it is a percentage of the value of alcoholic beverages. The specific rates are published by the RMCD.

1.3 Sales Tax (SST)

Sales tax administered in Malaysia is a single-stage tax imposed on the finished goods manufactured in Malaysia and goods imported into Malaysia.
Sales tax on imported goods is charged when the goods are declared, duty paid, and released from customs control.
10% rate applied to the total value (CIF value + import duty + excise duty) for imported alcoholic beverages.
Information on taxable goods and the current SST rate can be found on the MySST here [https://mysst.customs.gov.my/FAQSalesTax]
The details calculation of Sales Tax for the Importation of liquor mentioned below can be referred to in the Guide on Manufacturing and Import/Export [4]: