Smokers in Singapore are feeling the pinch as Budget 2026’s 20% tobacco tax hike took effect on February 12—pushing the Singapore cigarette price up by around $2 per packet. A standard 20-stick pack now costs around $17.74, with the excise duty jumping from 49.1 cents to 58.9 cents per stick across all tobacco products. This latest move by the government aims to curb smoking rates, already down to 8.4%, while adding $150 million in annual revenue to health initiatives. Here’s what we know about the new Singapore cigarette tax from the Budget 2026.
Why is the cigarette and tobacco tax going up again?
Prime Minister and Finance Minister Lawrence Wong framed the latest tobacco tax hike as a health measure aimed at discouraging smoking and protecting younger Singaporeans. The PM estimates the 20 per cent increase will generate around $150 million in an additional revenue each year, on top of more than $1 billion in annual tobacco duty collected between 2022 and 2024. In fact, Singapore’s daily smoking rate has already fallen to around 8.4% in 2024.
The excise duty on cigarettes, rose by 20% on February 12, making sticks go from 49.1 cents to 58.9 cents. The higher duty tax applies across all manufactured tobacco products, including cigars, cigarillos, and similar items—which are taxed at the same per stick rate.
Beyond cigarettes, duties on smokeless tobacco and beedies have gone up from $378 per kg to $454 per kg, while unmanufactured and cut tobacco now draw duty of $535 per kg up from $446. What do you think of this new tobacco tax in Singapore?
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