Budget 2026: Smokers to pay 20% more for tobacco products from Feb 12

Anjali Raguraman
Feb 12, 2026
The Straits Times

To discourage the consumption of tobacco products, a 20 per cent increase in tobacco excise duty will be implemented across all such products.

This comes into effect from Feb 12, said Prime Minister and Finance Minister Lawrence Wong in his Budget speech on the same day.

Revenue collected from tobacco duties has exceeded $1 billion, as figures from 2022 to 2024 show.

$1.11 billion was collected in 2024, $1.02 billion in 2023 and $1.11 billion in 2022.

The tobacco tax was last raised by 15 per cent in 2023, with the increase then expected to generate about $100 million in additional revenue per year.

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