Singapore Budget 2018: 10% increase in excise duty for all tobacco products

The increase can be imposed on top of customs duty, which is levied on goods imported into the country.
The increase can be imposed on top of customs duty, which is levied on goods imported into the country.ST PHOTO: WONG KWAI CHOW

SINGAPORE - A 10 per cent increase in excise duty for all tobacco products will kick in from Monday (Feb 19), announced Finance Minister Heng Swee Keat.

This change in tax is aimed at discouraging the consumption of tobacco products, he said.

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

This can be imposed on top of customs duty, which is levied on goods imported into the country.

Duties payable are calculated based on ad valorem or specific rates.

An ad valorem rate is a percentage of the goods' customs value, while a specific rate is a specified amount per unit of weight or other quantity.

With the changes, a range of unmanufactured tobacco products will see their excise duty raised from $352 per kg to $388 per kg, according to a circular issued on the Singapore Customs website.

Clove cigarettes, and other cigarettes containing tobacco and tobacco substitutes, will now be subjected to excise duty of 42.7 cents for every gram or part thereof of each stick of cigarette.

 
 

This is up from the previous amount of 38.8 cents for every gram or part thereof of each stick of cigarette.

Other smoking tobacco, whether packed for retail sale or not, will now be imposed an excise duty of $427 per kg.

Excise duty for homogenised or reconstituted tobacco products, regardless of whether these are packed for retail sale or not, and manufactured tobacco substitutes will be revised to $427 per kg, up from $388 per kg.

For further inquiries, contact the Singapore Customs Call Centre on 6355-2000.