Channel NewsAsia
Updated: 02/21/2014 19:33 | By Channel NewsAsia

Budget 2014: Taxation on liquor, tobacco products, betting to increase

Budget 2014: Taxation on liquor, tobacco products, betting to increase


Budget 2014: Taxation on liquor, tobacco products, betting to increase

SINGAPORE: The government will increase liquor duties by 25 per cent, and taxation on cigarettes and other tobacco products by 10 per cent.

The changes will take effect from Friday.

Deputy Prime Minister Tharman Shanmugaratnam announced this in his Budget statement.

He said the increase in excise duties is in line with the government's social objective of avoiding excessive consumption or indulgence in these areas.

Mr Tharman said more people are smoking, especially youths aged 18 to 29 years.

He added that duties on cigarettes and manufactured tobacco products had also not changed since 2005.

The increase is expected to result in additional revenue of about S$70 million a year.

On liquor duties, Mr Tharman said they were last effectively increased in 2004 to bring them in line with international obligations.

This year's rise in excise duty rates is to keep pace with inflation.

Mr Tharman said the increase will bring an additional revenue gain of about S$120 million a year.

Betting duties on lotteries will also be raised from 25 per cent of gross bets to 30 per cent.

The changes will take place from 1 July, and will affect Singapore Pools.

Mr Tharman said private clubs will not be affected as they pay different duties on their jackpot machine takings.

But he added that the Tote Board will have enough resources to continue its donation activities.

The raise in betting duties will increase government revenue by S$255 million a year.  

- CNA/xq

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