4.4 Although the proportion of smokers in Singapore dropped from 18% in 1992 to 14% in 2001, the percentage of young female smokers aged 18 to 24 increased from 2.8% to 8.2% in the same period. To discourage smoking, and especially to deter the young from picking up the habit, the Government will take every opportunity to raise excise duties on cigarettes and other tobacco products.

4.5 Last year, I raised the excise duty on cigarettes from $180 per kg to $210 per kg. I have decided to further increase the excise duties on all tobacco products with effect from today. Excise duty on cigarettes will go up from $210 per kg to $255 per kg. The new excise duties on other tobacco products are at Annex H.

4.6 The Government has also noticed the emergence of low-priced cigarettes with slightly lower tobacco content. The low prices make such cigarettes more accessible to our youths. I have therefore decided to tax cigarettes by sticks, instead of by weight so that these cigarettes are subject to the same duty rates as regular packs of cigarettes. Under this new system of taxation, the excise duty on each stick of cigarette less than 1g will be 25.5 cents, and each additional 1g or part thereof will attract a duty of 25.5 cents. To give traders and cigarette companies time to adjust their systems, this new system of taxation will be implemented from 1 July 2003.

4.7 The annual revenue gain from these changes is about $194 million.

4.8 Travellers can currently bring in tobacco products not exceeding 2 kg without a permit, by paying duty on them. This is equivalent to 100 twenty-stick packs of cigarettes. Some people have found that paying duty on cigarettes bought overseas is still cheaper than buying cigarettes here. I have decided to lower the limit to 400g, which is equivalent to 20 packs of cigarettes. This will take effect from 1 April 2003.