(Singapore, Feb 15, 2023) The retail price of cigarettes has become at least 10% higher than that of yesterday.
That comes after Singapore implemented a 15% increase in excise duty across all tobacco products, as part of the 2023 Budget which was announced yesterday afternoon.
It has been reported that a 20-stick packet of Marlboro cigarettes is now sold at S$15.52, in comparison to S$14 previously. The sudden increase has caused some retailers to use makeshift signs to inform customers.
Currently, the excise tax incidence on the packet of cigarettes will be around 75% before goods and services tax — a rate which is comparable to what the World Health Organization recommends encourages.
Excise duty is levied on goods manufactured in or imported into Singapore and the increase is expected to generate about S$100 million in additional revenue per year.
As a result of the tax increase, cigarette buyers will reportedly have to pay 49.1 cents tax for every stick of cigarette, up from 42.7.
It is not the first time Singapore adds duties on tobacco to discourage consumption. In 2014 and 2018, duties for cigarettes and other manufactured tobacco were increased by 10% respectively.
In 2021, Singapore raised the minimum legal age for smoking to 21 years from 19 years in 2019.
