Singapore Prioritizes Public Health Over E-Cigarette Tax Revenue, Finance Minister Says
Government Remains Committed to E-Cigarette Ban Despite Potential Loss in Tax Revenue
Singapore’s Finance Minister Lawrence Wong has stated that the government is not overly concerned about the impact of its e-cigarette ban on state revenue. While acknowledging that the ban will eliminate potential income from excise taxes, Wong emphasized that the policy is necessary to protect public health.
In response to a question from Member of Parliament James Lim regarding the total potential excise tax revenue lost due to the e-cigarette ban since 2018, Wong clarified that the potential loss of tobacco excise revenue due to reduced consumption of tobacco products was not a factor considered in this decision.
Protecting Public Health Takes Precedence
Wong explained that the government places great importance on public health and is committed to protecting the population from the dangers of e-cigarettes. He noted that the potential harm caused by legalizing e-cigarettes would be just as significant as that of other tobacco products. As such, the government has no plans to change its policy on banning e-cigarettes.
“Regardless, the government has no plans to change our policy as we prioritize protecting public health and preventing harm, especially to Singapore’s younger generation,” Wong stated.
Strict Penalties and Increased Enforcement
The Singapore government has deemed e-cigarettes illegal, imposing fines of up to S$2,000 (approximately Rp23.38 million) for those who violate the ban. Individuals who import, distribute, or sell these products face even harsher penalties, including imprisonment.
In December 2023, the government announced heightened inspections at the country’s air, land, and sea entry points as part of efforts to prevent the illegal entry of e-cigarettes. Additionally, authorities have intensified monitoring of e-cigarette sales through social media and online shopping sites.
As Singapore remains steadfast in its commitment to public health and the protection of its citizens, particularly the younger generation, the e-cigarette ban is set to continue, with the government prioritizing the well-being of its people over potential tax revenue.
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