Clarification by Senior Minister of State for Health
Ministry of HealthSpeakers
Summary
This clarification concerns a factual correction by Senior Minister of State Koh Poh Koon regarding tobacco tax effectiveness. He cited studies showing that 10% price increases lead to a 3% to 5% consumption drop and a 3.5% reduction in youth smoking. The correction specifically revised the percentage reduction for children taking up smoking from an initial 3% to 5% range to 7%. He observed that inflation and income growth have eroded the impact of the last tax increase implemented in 2018. Consequently, he stated that the government will continue to work with the Ministry of Finance to review the tobacco tax rate.
Transcript
The following statements were in the reply given by the Senior Minister of State for Health (Dr Koh Poh Koon) during Question Time at the Sitting of 11 January 2022:
The Senior Minister of State for Health (Dr Koh Poh Koon): The most effective has been tobacco tax. Several economic studies have reached a consensus that for every 10% increase in real price, there will be about a 3% to 5% decrease in overall tobacco consumption, a 3.5% reduction in young people taking up smoking and a total of about 3% to 5% reduction of new young people taking up smoking as well. But it was last increased in 2018. So, with inflation and income increases, the tax burden gets eroded over time and we will have to continue to work with MOF to review the tobacco tax rate. [Please refer to “Number of Singaporeans Who Have Given Up Smoking in Past Two Years and Proposal to Consider Total Ban on Sale of Tobacco Products”, Official Report, 11 January 2022, Vol 95, Issue No 45, Oral Answers to Questions section.]
Written statement by Dr Koh Poh Koon circulated with leave of the Speaker in accordance with Standing Order No 29(5):
I wish to make the following factual correction to the reply given during the address of Question Nos 10 to 14 at the Sitting of 11 January 2022. My reply should read as follows:
The Senior Minister of State for Health (Dr Koh Poh Koon): The most effective has been tobacco tax. Several economic studies have reached a consensus that for every 10% increase in real price, there will be about a 3% to 5% decrease in overall tobacco consumption, a 3.5% reduction in young people taking up smoking and a total of about 7% reduction of kids taking up smoking as well. But it was last increased in 2018. So, with inflation and income increases, the tax burden gets eroded over time and we will have to continue to work with MOF to review the tobacco tax rate.