Budget 2023: Tax on all tobacco products increase by 15%
The increase is expected to generate about S$100 million in additional revenue yearly.
SINGAPORE – The government has raised the excise duties on all tobacco products by 15 per cent.
Deputy Prime Minister Lawrence Wong announced during his Budget speech in Parliament on Tuesday (14 February) that the tax increase would take effect immediately.
This move is "to discourage the consumption of tobacco products", Wong said, with the increase "expected to generate about S$100 million in additional revenue per year".
This means that users can expect to pay 49.1 cents per stick of cigarette, compared to 42.7 cents per stick previously.
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The duty levied on cigars will go up from 42.7 cents per gram to 49.1 cents per gram. Smokeless tobacco products will see its tax being increased to 37.8 per gram, from 32.9 per gram previously.
Duties for cigarettes and other manufactured tobacco were last increased in 2018. Then, a 10 per cent hike was levied, and before that, it was increased by 10 per cent in 2014.
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