Taxing Cigarettes by Stick

Cigarettes will be taxed by stick instead of by weight with effect from 1 July 2003. The change in taxation method was announced in February 2003 as part of the increase in tobacco taxes to help discourage smoking and deter the young from picking up the habit.

The current excise duty on cigarettes is $255 per kg. The excise duties on cigarettes will be revised to the following from 1 July 2003:

a) Each stick of cigarette not exceeding 1g will attract a duty of 25.5 cents;

b) Each additional 1g or part thereof will attract a duty of 25.5 cents.

With the switch to tax by stick, cigarette duty will go up by 10% on average.

MINISTRY OF FINANCE