Budget 2018: 10% increase in tobacco excise duty from Feb 19

Budget 2018: 10% increase in tobacco excise duty from Feb 19

The Government will impose a 10 per cent increase in tobacco excise duty in a bid to discourage consumption, Finance Minister Heng Swee Keat said during his Budget speech on Monday (Feb 19).

SINGAPORE: The Government will impose a 10 per cent increase in tobacco excise duty in a bid to discourage consumption, Finance Minister Heng Swee Keat said during his Budget speech on Monday (Feb 19).

Mr Heng said the higher excise duty will be implemented across all tobacco products with effect from Monday.

According to the Singapore Customs’ website, cigars, cheroots and cigarillos are now taxed at S$388 per kilo. This will increase to S$427 from today.

The excise duties for cigarettes containing tobacco and cigarettes with tobacco substitutes will now increase to almost 43 cents for every gram of each cigarette stick.

According to the World Health Organisation, a 10 per cent increase in the price of cigarettes results in a four per cent decrease in demand in high income countries, and  about a five per cent decrease in demand in low and middle income countries.

Source: CNA/mo

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