Potential loss in tobacco tax revenue not a factor in e-cigarette ban: Lawrence Wong

SINGAPORE: Public health, not potential tax revenue losses, was the reason Singapore decided to ban electronic cigarettes in 2018, Deputy Prime Minister Lawrence Wong said on Wednesday (Jan 10).

Member of Parliament James Lim (WP-Sengkang) had filed questions on e-cigarettes or vapes, asking if the potential loss of tax revenue was a factor in disallowing e-cigarettes.

In a written reply, Mr Wong said the ban was to protect Singapore’s population from the harms of e-cigarettes, also known as vapes.

“The potential loss in tobacco tax revenue from the reduced consumption of tobacco products was not a factor in this decision,” said Mr Wong, who is also the Finance Minister.

Assoc Prof Lim also asked about the practical limitations of introducing an equivalent nicotine tax on e-cigarette products if they were to be made legal.

Mr Wong said that if the government were to legalise and tax e-cigarettes, “the challenges would be similar to those we encounter for cigarettes and other tobacco products today”.

“In any case, the government has no plans to change our current approach, as our priority is to protect the health of our population and prevent e-cigarettes from causing harm to our people, especially younger Singaporeans,” he added.

Vaping is illegal in Singapore and offenders can be fined up to S$2,000 (US$1,490). Those who import, distribute or sell such products face stiffer penalties, including a possible jail term.

Authorities announced in December a step up in checks at air, land and sea checkpoints as part of efforts to clamp down on vaping.

During an operation at Changi Airport in late December, 177 arriving passengers were found to be in possession of e-vaporisers, 61 of whom were fined.

Aside from the border checkpoints, authorities will also increase checks at places such as the central business district, shopping centres, parks and smoking areas, as well as public entertainment outlets such as bars and clubs.

Calling these locations “public hotspots”, authorities said offenders will be issued fines on the spot.

The illicit sale of e-vaporisers via social media and messaging platforms is also being monitored, to curb online access of such items.