Budget 2026: Tobacco excise duty raised by 20% to curb smoking

SINGAPORE: The government will raise tobacco excise duty by 20 per cent across all tobacco products with effect from Thursday (Feb 12) to discourage smoking, Prime Minister Lawrence Wong said in his Budget 2026 speech.

Excise duty is levied on goods manufactured in or imported into Singapore.

Duties on cigars, such as cheroots, cigarillos, cigarettes and other manufactured tobacco products will rise from 49.1 cents (US$0.39) per stick to 58.9 cents per stick.

Duties on other smokeless tobacco and beedies will increase from S$378 per kg to S$454 per kg.

Duties on unmanufactured and cut tobacco, as well as other tobacco refuse products, will rise from S$446 per kg to S$535 per kg.

The excise duty on tobacco products has been progressively raised over the years, by 10 per cent in 2018 and by 15 per cent in 2023.

Measures aimed at discouraging tobacco use have also been rolled out over the years, including mandating standardised packaging and enhanced graphic health warnings for all tobacco sold in Singapore.

Since July 2022, smoking has been prohibited in all public parks, selected water sites and 10 recreational beaches.

Singapore's smoking rate has been falling over the years.

According to the National Population Health Survey 2024 conducted by the Ministry of Health, 8.8 per cent of Singapore residents smoked daily in 2023. This fell to 8.4 per cent in 2024, reaching an all-time low.